Financial software provider SS&C Technologies (NASDAQ: SSNC) will be reporting earnings this Thursday afternoon. Here’s what to look for.
SS&C beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.54 billion, up 5.9% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.
Is SS&C a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting SS&C’s revenue to grow 5.6% year on year to $1.55 billion, slowing from the 7.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.47 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SS&C has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.
Looking at SS&C’s peers in the professional services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Equifax delivered year-on-year revenue growth of 7.2%, beating analysts’ expectations by 1.4%, and ManpowerGroup reported revenues up 2.3%, topping estimates by 0.7%. ManpowerGroup traded down 11.4% following the results.
Read our full analysis of Equifax’s results here and ManpowerGroup’s results here.
Investors in the professional services segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. SS&C is down 8% during the same time and is heading into earnings with an average analyst price target of $98.56 (compared to the current share price of $82.50).
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