DST Systems Beats on the Top Line
DST Systems (NYS: DST) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), DST Systems crushed expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins contracted across the board.
DST Systems booked revenue of $653.2 million. The five analysts polled by S&P Capital IQ predicted revenue of $500.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $591.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.05. The four earnings estimates compiled by S&P Capital IQ averaged $1.04 per share. GAAP EPS of $1.22 for Q1 were 4.3% higher than the prior-year quarter's $1.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.4%, 330 basis points worse than the prior-year quarter. Operating margin was 9.2%, 340 basis points worse than the prior-year quarter. Net margin was 8.5%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $485.1 million. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $4.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 111 members out of 118 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 give 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 $55.60.
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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.