Financial software provider SS&C Technologies (NASDAQ: SSNC) will be announcing earnings results this Thursday after market hours. Here’s what investors should know.
SS&C beat analysts’ revenue expectations last quarter, reporting revenues of $1.65 billion, up 8.8% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ billings estimates.
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 8.1% year on year, improving from the 5.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Equifax delivered year-on-year revenue growth of 10.6%, meeting analysts’ expectations, and ManpowerGroup reported revenues up 7.5%, topping estimates by 2.9%. ManpowerGroup traded up 34.1% following the results.
Read our full analysis of Equifax’s results here and ManpowerGroup’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 5.5% on average over the last month. SS&C is up 3.5% during the same time and is heading into earnings with an average analyst price target of $91.22 (compared to the current share price of $67.44).
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