SS&C Technologies (SSNC) shares rose 3.3% after reporting record adjusted revenues of $1.538 billion, a 5.9% YoY increase, and adjusted earnings per share of $1.45, up 9.8%. The company also announced a definitive agreement to acquire Calastone, a global funds network, for $1.03 billion. Analysts raised their price targets on the stock, reflecting increased optimism about the company's growth prospects. SS&C's shares are up 14.5% since the beginning of the year, trading close to its 52-week high of $89.13.
SS&C Technologies (SSNC) shares rose 3.3% after reporting record adjusted revenues of $1.538 billion, a 5.9% year-over-year (YoY) increase, and adjusted earnings per share of $1.45, up 9.8%. The company also announced a definitive agreement to acquire Calastone, a global funds network, for $1.03 billion. Analysts raised their price targets on the stock, reflecting increased optimism about the company's growth prospects. SS&C's shares are up 14.5% since the beginning of the year, trading close to its 52-week high of $89.13 [3].
The fintech firm reported Q2 2025 revenue of $1.54 billion, a 5.9% jump over last year and just above analyst estimates, according to LSEG. Adjusted earnings per share climbed 10% to $1.45, while recurring financial services revenue ticked up 3.9%, giving investors more reasons to trust the company’s steady trajectory. Organic growth landed at 3.5%, showing solid fundamentals if not flashy expansion [1].
The announced $1.03 billion purchase of Calastone aims to boost SS&C’s global reach in fund transaction tech, broadening its customer base and tech footprint. Management also set upbeat targets for next quarter and the full year, reinforcing the outlook for ongoing, consistent growth [1].
SS&C Technologies beat expectations this quarter, with recurring revenue holding strong and a $1 billion acquisition aimed at global growth. The company reported adjusted earnings per share of $1.45, beating the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.27 per share a year ago [2].
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ahead of this earnings release, the estimate revisions trend for SS&C Technologies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock [2].
SS&C Technologies shares have added about 10.2% since the beginning of the year versus the S&P 500's gain of 7.3%. The company has topped consensus revenue estimates four times over the last four quarters [2].
References:
[1] https://finimize.com/content/ssc-technologies-tops-expectations-with-steady-revenue-gains
[2] https://www.nasdaq.com/articles/ssc-technologies-ssnc-q2-earnings-and-revenues-top-estimates
[3] https://seekingalpha.com/news/4471118-ss-and-c-outlines-4_5-percent-organic-revenue-growth-target-and-1_5b-share-repurchase-plan-as
Comments
No comments yet