Financial software provider SS&C Technologies (NASDAQ: SSNC) will be reporting earnings this Thursday afternoon. Here’s what to look for.
SS&C beat analysts’ revenue expectations last quarter, reporting revenues of $1.65 billion, up 8.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ full-year EPS guidance estimates and full-year revenue guidance topping analysts’ expectations.
Is SS&C a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting SS&C’s revenue to grow 7.6% year on year, improving from the 5.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SS&C has a history of exceeding Wall Street’s expectations.
Looking at SS&C’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Equifax delivered year-on-year revenue growth of 14.3%, beating analysts’ expectations by 2%, and Marsh reported revenues up 7.6%, topping estimates by 2.9%. Marsh’s stock price was unchanged following the results.
Read our full analysis of Equifax’s results here and Marsh’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 10.8% on average over the last month. SS&C’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $95.33 (compared to the current share price of $71.33).
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