Cass Information Systems Outruns Estimates Again
Cass Information Systems (NAS: CASS) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cass Information Systems crushed expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins contracted, and net margins grew.
Cass Information Systems booked revenue of $26.5 million. The one analyst polled by S&P Capital IQ expected revenue of $12.2 million. Sales were 3.0% lower than the prior-year quarter's $25.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.53. The one earnings estimate compiled by S&P Capital IQ predicted $0.08 per share on the same basis. GAAP EPS of $0.53 for Q4 were 7.3% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 46.1%, 170 basis points worse than the prior-year quarter. Operating margin was 27.1%, 260 basis points worse than the prior-year quarter. Net margin was 20.7%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.3 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $50.9 million. The average EPS estimate is $0.31.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 83 members out of 89 rating the stock outperform, and six members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Cass Information Systems a green thumbs-up, and three give it a red thumbs-down.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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