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Coming Soon: DST Systems Earnings

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Checking expectations

DST Systems (NYSE: DST) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DST Systems's revenues will compress -27.0% and EPS will grow 2.9%.

The average estimate for revenue is $476.9 million. On the bottom line, the average EPS estimate is $1.08.

Revenue details
Last quarter, DST Systems recorded revenue of $487.0 million. GAAP reported sales were 5.6% higher than the prior-year quarter's $623.4 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $1.19. GAAP EPS of $0.83 for Q4 were 4.6% lower than the prior-year quarter's $0.87 per share.

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

Recent performance
For the preceding quarter, gross margin was 17.6%, 230 basis points better than the prior-year quarter. Operating margin was 12.0%, 260 basis points better than the prior-year quarter. Net margin was 5.8%, 50 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.05 billion. The average EPS estimate is $4.58.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 116 members out of 124 rating the stock outperform, and eight members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give DST Systems 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 DST Systems is outperform, with an average price target of $65.00.

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