Cass Information Systems Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

Cass Information Systems (NAS: CASS) reported earnings on April 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Cass Information Systems beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.


Gross margins contracted, operating margins shrank, and net margins expanded.

Revenue details
Cass Information Systems tallied revenue of $28.4 million. The one analyst polled by S&P Capital IQ anticipated sales of $26.8 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $27.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The one earnings estimate compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.56 for Q1 were 1.8% higher than the prior-year quarter's $0.55 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.3%, 370 basis points worse than the prior-year quarter. Operating margin was 28.5%, 450 basis points worse than the prior-year quarter. Net margin was 20.8%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $27.5 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $110.4 million. The average EPS estimate is $2.31.

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 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 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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