DST Systems Earnings: Here’s Why the Stock is Down Now

DST Systems Inc. (NYSE:DST) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.91%.

DST Systems Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35.06% to $1.04 in the quarter versus EPS of $0.77 in the year-earlier quarter.

Revenue: Decreased 23.34% to $485.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DST Systems Inc. reported adjusted EPS income of $1.04 per share. By that measure, the company missed the mean analyst estimate of $1.05. It beat the average revenue estimate of $475.63 million.

Quoting Management: “DST’s operating results for the second quarter continue to reflect the progress we are making against our strategic initiatives. We recorded higher operating revenues and operating income in our operating segments and are realizing the benefits of our asset monetization activities,” said Steve Hooley, President and CEO of DST.

Key Stats (on next page)…

Revenue decreased 28.91% from $682.4 million in the previous quarter. EPS increased 5.05% from $0.99 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.16 to a profit $1.14. For the current year, the average estimate has moved down from a profit of $4.48 to a profit of $4.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)