SS&C Technologies Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SS&C Technologies Holdings met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins improved across the board.
SS&C Technologies Holdings logged revenue of $95.7 million. The five analysts polled by S&P Capital IQ anticipated revenue of $96.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $86.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.29. The four earnings estimates compiled by S&P Capital IQ forecast $0.28 per share on the same basis. GAAP EPS of $0.16 for Q4 were 33% higher than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.2%, 70 basis points better than the prior-year quarter. Operating margin was 24.8%, 40 basis points better than the prior-year quarter. Net margin was 13.9%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $95.6 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $402.6 million. The average EPS estimate is $1.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 17 members out of 20 rating the stock outperform, and three members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give SS&C Technologies Holdings a green thumbs-up, and one gives 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 $21.00.
Over the decades, small-cap stocks like SS&C Technologies Holdings have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add SS&C Technologies Holdings to My Watchlist.
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. 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.