Cass Information Systems Outruns Estimates Again

Seth Jayson, The Motley Fool
Updated

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
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.

Looking ahead
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.

Investor sentiment
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 thisarticle 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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