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.
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.
- Add Cass Information Systems 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. The Motley Fool has no position in any of the stocks mentioned. 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.