The 10-second takeaway
For the quarter ended March 31 (Q1), DST Systems beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share contracted. GAAP earnings per share grew significantly.
Margins increased across the board.
DST Systems reported revenue of $495.2 million. The four analysts polled by S&P Capital IQ predicted revenue of $476.9 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 came in at $0.99. The four earnings estimates compiled by S&P Capital IQ predicted $1.08 per share. Non-GAAP EPS of $0.99 for Q1 were 5.7% lower than the prior-year quarter's $1.05 per share. GAAP EPS of $2.04 for Q1 were 67% higher than the prior-year quarter's $1.22 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 15.8%, 80 basis points better than the prior-year quarter. Operating margin was 10.9%, 110 basis points better than the prior-year quarter. Net margin was 13.7%, 520 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $474.3 million. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $4.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 117 members out of 125 rating the stock outperform, and eight members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 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 $74.00.
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