The Gory Details on Cass Information Systems's Double Miss

Just the facts, Fool.

Seth Jayson
Seth Jayson
Mar 11, 2013 at 12:00AM
Other

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.

Is Cass Information Systems playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.