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Why SS&C Technologies Stock Popped Today

By Steve Symington - Nov 1, 2019 at 4:18PM

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A healthy beat and raise drove shares of the financial services software company higher to end the week.

What happened

Shares of SS&C Technologies ( SSNC -1.22% ) closed Friday up 10.6% after the financial services software company announced strong third-quarter results and raised its full-year outlook.

So what

More specifically, SS&C's adjusted revenue grew 14.7% year over year to $1.151 billion, translating to a 17.7% increase in adjusted earnings to $0.93 per share. Both figures compared favorably to SS&C's latest guidance, which called for revenue of $1.123 billion to $1.153 billion, and adjusted earnings per share of $0.85 to $0.91.

SS&C Technologies financial software displayed on two tablet computers.

IMAGE SOURCE: SS&C.

SS&C CEO Bill Stone called it "an eventful quarter," pointing to recent management changes to help re-accelerate growth, a new $500 million share repurchase program authorized in August, and two strategic acquisitions last month.

Now what

SS&C also told investors to expect fourth-quarter revenue of $1.154 billion to $1.184 billion, and adjusted net income per share of $0.95 to $0.97. By comparison, most analysts were modeling for fourth-quarter earnings of $0.94 per share on revenue slightly below the midpoint of SS&C's expected range.

Finally, SS&C raised its full-year outlook, calling for 2019 revenue of $4.611 billion to $4.641 billion (up from $4.571 billion to $4.631 billion previously), and adjusted net income of $973.3 million to $990.3 million (up from its old target range of $947.5 million to $988.5 million).

In the end, with shares trading roughly flat over the past year and down around 23% from their 52-week high set in April, it's no surprise to see the stock rebounding as investors absorb the implications of this beat and raise.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

SS&C Technologies Holdings, Inc. Stock Quote
SS&C Technologies Holdings, Inc.
SSNC
$75.03 (-1.22%) $0.93

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