The Gory Details on Cass Information Systems's Double Miss

Cass Information Systems (Nasdaq: CASS  ) filed its 10-K on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cass Information Systems missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share contracted.

Margins dropped across the board.

Revenue details
Cass Information Systems notched revenue of $26.8 million. The one analyst polled by S&P Capital IQ looked for revenue of $28.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.46. The one earnings estimate compiled by S&P Capital IQ anticipated $0.54 per share. GAAP EPS of $0.46 for Q4 were 4.2% lower than the prior-year quarter's $0.48 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.0%, 650 basis points worse than the prior-year quarter. Operating margin was 26.5%, 280 basis points worse than the prior-year quarter. Net margin was 18.3%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $28.3 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $116.1 million. The average EPS estimate is $2.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 80 members out of 86 rating the stock outperform, and six members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Cass Information Systems a green thumbs-up, and three give it a red thumbs-down.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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