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 0.82%.

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DST Systems Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.71% to $0.99 in the quarter versus EPS of $1.05 in the year-earlier quarter.

Revenue: Rose 4.47% to $682.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DST Systems Inc. reported adjusted EPS income of $0.99 per share. By that measure, the company missed the mean analyst estimate of $1.08. It beat the average revenue estimate of $477.03 million.

Quoting Management: “We are encouraged by DST’s operating results for the first quarter. We recorded higher GAAP operating revenues and operating income in both the Financial Services and Customer Communications Segments. Our brokerage, healthcare, retirement and customer communications businesses successfully converted previously announced new client business during the quarter. We are also executing on our strategic initiatives, including selective monetization of non-core assets,” said Steve Hooley, President and CEO of DST.

Key Stats (on next page)…

Revenue increased 3.61% from $658.6 million in the previous quarter. EPS decreased 16.81% from $1.19 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1 to a profit $1.08. For the current year, the average estimate has moved up from a profit of $4.34 to a profit of $4.58 over the last ninety days.

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