DST Systems (NYS: DST) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), DST Systems beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted significantly.
Gross margins increased, operating margins grew, net margins contracted.
DST Systems booked revenue of $485.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $475.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.04. The four earnings estimates compiled by S&P Capital IQ averaged $1.05 per share. Non-GAAP EPS of $1.04 for Q2 were 35% higher than the prior-year quarter's $0.77 per share. GAAP EPS of $1.77 for Q2 were 44% lower than the prior-year quarter's $3.17 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 16.1%, 20 basis points better than the prior-year quarter. Operating margin was 11.1%, 60 basis points better than the prior-year quarter. Net margin was 11.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $479.8 million. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $1.94 billion. The average EPS estimate is $4.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 122 members out of 130 rating the stock outperform, and eight members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 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 outperform, with an average price target of $76.50.
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The article DST Systems Beats on Revenue, Matches Expectations on EPS originally appeared on Fool.com.
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