DST Systems Beats on EPS but GAAP Results Lag
DST Systems (NYS: DST) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DST Systems missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted significantly.
Margins shrank across the board.
DST Systems logged revenue of $457.3 million. The five analysts polled by S&P Capital IQ predicted sales of $466.9 million. Sales were 7.4% higher than the prior-year quarter's $424.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.05. The four earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS of $0.93 for Q4 were 54% lower than the prior-year quarter's $2.00 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 15.2%, 790 basis points worse than the prior-year quarter. Operating margin was 9.4%, 150 basis points worse than the prior-year quarter. Net margin was 6.7%, 940 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $520.0 million. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $4.09.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 110 members out of 117 rating the stock outperform, and seven members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give DST Systems a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DST Systems is hold, with an average price target of $54.25.
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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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