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SS&C Technologies Holdings Beats Analyst Estimates on EPS

SS&C Technologies Holdings (Nasdaq: SSNC  ) reported earnings on Aug. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), SS&C Technologies Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.

Gross margins dropped, operating margins grew, net margins grew.

Revenue details
SS&C Technologies Holdings notched revenue of $177.5 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $177.1 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $120.9 million.

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

EPS details
EPS came in at $0.48. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. Non-GAAP EPS of $0.48 for Q2 were 45% higher than the prior-year quarter's $0.33 per share. GAAP EPS were $0.31 for Q2 compared to -$0.07 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 45.5%, 230 basis points worse than the prior-year quarter. Operating margin was 25.5%, 20 basis points better than the prior-year quarter. Net margin was 14.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $181.0 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $718.3 million. The average EPS estimate is $1.89.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 34 members out of 37 rating the stock outperform, and three members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give SS&C Technologies Holdings a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SS&C Technologies Holdings is outperform, with an average price target of $33.20.

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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. 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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