Cass Information Systems
The 10-second takeaway
For the quarter ended June 30 (Q2), Cass Information Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. GAAP earnings per share was unchanged.
Gross margins dropped, operating margins dropped, net margins grew.
Cass Information Systems reported revenue of $29.2 million. The one analyst polled by S&P Capital IQ hoped for sales of $27.1 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 $0.52. The one earnings estimate compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.52 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.2%, 170 basis points worse than the prior-year quarter. Operating margin was 28.0%, 200 basis points worse than the prior-year quarter. Net margin was 20.8%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $28.0 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $112.3 million. The average EPS estimate is $2.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 79 members out of 85 rating the stock outperform, and six members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Cass Information Systems a green thumbs-up, and two give it a red thumbs-down.
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