Palantir Technologies lifts guidance after Q2 results beat Wall Street estimates
SS&C Technologies Holdings Inc. (SSNC) stock soared to a 52-week high of $77.04, reflecting a remarkable year of performance for the software and services company. Investors have shown increasing confidence in SSNC's strategic direction and market position, as evidenced by the impressive 37.46% surge in the stock price over the past year. This significant uptick underscores the company's successful expansion and the growing demand for its financial services technology solutions. The 52-week high milestone is a testament to SSNC's strong financial health and its potential for continued growth in the competitive tech landscape.
In other recent news, SS&C Technologies reported record earnings and revenue growth for the third quarter. The company announced an adjusted revenue of $1,466.8 million, indicating a 7.3% increase from the previous year, and a 10.3% rise in adjusted diluted earnings per share to $1.29. Additionally, SS&C's operating cash flow saw a significant increase of 39%, amounting to $336.6 million for the quarter. The company also repurchased 1.2 million shares for $89.4 million and expects the acquisition of Battea-Class Action (WA:ACT) Services to contribute about $95 million in annual revenue.
For the fourth quarter, revenue is anticipated to range between $1.46 billion and $1.5 billion, with adjusted diluted EPS projected between $1.29 and $1.35. The company's full-year revenue expectations range from $5.815 billion to $5.855 billion. Looking ahead, SS&C projects a 4% to 8% organic growth outlook for 2025, focusing on sales force and product development.
However, a slowdown in organic growth is expected in Q4 2024 due to tough comparisons with a strong Q4 2023, and $8 million in healthcare licenses were postponed, which may affect growth expectations for Q4. On the brighter side, the acquisition of Battea-Class Action Services is expected to be immediately accretive to earnings, and the company is optimistic about licensing its technology to major players in the healthcare market, potentially generating revenue of $1.2 billion to $1.8 billion.
InvestingPro Insights
SS&C Technologies' recent achievement of a 52-week high is further supported by InvestingPro data, which reveals a robust 39.78% one-year price total return. This aligns closely with the article's reported 37.46% surge, confirming the stock's strong performance. The company's market capitalization stands at an impressive $19.05 billion, reflecting its significant presence in the financial technology sector.
InvestingPro Tips highlight SS&C's commitment to shareholder value, noting that the company "has raised its dividend for 8 consecutive years" and "has maintained dividend payments for 11 consecutive years." This consistent dividend policy may be contributing to investor confidence and the stock's upward trajectory.
Additionally, SS&C boasts "impressive gross profit margins," with InvestingPro data showing a gross profit margin of 49.39% for the last twelve months as of Q3 2024. This strong profitability metric underscores the company's operational efficiency and may be a key factor in its attractiveness to investors.
For readers interested in a deeper analysis, InvestingPro offers 11 additional tips on SS&C Technologies, providing a comprehensive view of the company's financial health and market position.
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