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WINDSOR, Conn. - SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) saw its shares climb 5% after reporting third-quarter adjusted earnings that exceeded analyst expectations, driven by strong revenue growth and improved profit margins.
The investment and financial software provider posted adjusted earnings per share of $1.57 for the third quarter, surpassing the analyst consensus of $1.47. Revenue reached $1.57 billion, slightly above the consensus estimate of $1.55 billion and representing a 7.0% increase YoY. The company’s adjusted operating income margin improved to 38.4%, up 100 basis points from the same period last year.
"These numbers attest to the company’s long-term financial and operating strength," said Bill Stone, Chairman and Chief Executive Officer. "The 22% increase to $1,101 million in operating cash flow through three quarters gives us flexibility to pursue growth opportunities as we continue to pay down debt and repurchase shares."
The company returned $305.9 million to shareholders during the quarter, including $240.1 million in share repurchases and $65.8 million in dividends. SS&C also increased its annual dividend by 8.0% to $1.08 per share.
For the fourth quarter, SS&C forecasts revenue between $1.59 billion and $1.63 billion, slightly below the analyst consensus of $1.645 billion. The company expects adjusted earnings per share between $1.56 and $1.62, compared to the consensus estimate of $1.60.
Full-year guidance was raised, with the company now projecting adjusted earnings per share of $6.02 to $6.08, above the consensus of $5.97. Annual revenue is expected to range from $6.21 billion to $6.25 billion, roughly in line with analyst expectations of $6.251 billion.
The company highlighted its investments in AI-powered automation, which Stone described as showing "early green shoots, evolving our offering to specialized, purpose-built agents backed by our vertical expertise."
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