Financial software provider SS&C Technologies (NASDAQ: SSNC) will be reporting results this Wednesday afternoon. Here’s what to look for.
SS&C beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.51 billion, up 5.4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.
Is SS&C a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SS&C’s revenue to grow 4.3% year on year to $1.52 billion, slowing from the 6.5% 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
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. ManpowerGroup posted flat year-on-year revenue, beating analysts’ expectations by 3.6%, and Concentrix reported revenues up 1.5%, topping estimates by 1.2%. ManpowerGroup’s stock price was unchanged after the results, while Concentrix was down 6.3%.
Read our full analysis of ManpowerGroup’s results here and Concentrix’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 4.5% on average over the last month. SS&C is up 2.9% during the same time.
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