Research Desk Line-up: Pegasystems Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) ("SS&C"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SSNC, following the Company's disclosure of its third quarter fiscal 2017 operating results on October 25, 2017. The financial services software maker met earnings expectations and provided guidance for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected Pegasystems, Inc. (NASDAQ: PEGA) for due-diligence and potential coverage as the Company announced on November 08, 2017, its financial results for Q3 and first nine months of 2017. Register for a free membership today, and be among the early birds that get access to our report on Pegasystems when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SSNC; also brushing on PEGA. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SSNC

http://protraderdaily.com/optin/?symbol=PEGA

Earnings Reviewed

SS&C reported GAAP revenues of $418.3 million for Q3 2017, up 9.1% compared to $383.3 million in Q3 2016. The Company's adjusted revenues were $419.6 million for the reported quarter, up 7.1% compared to $391.9 million in the prior year's same quarter. SS&C's revenue numbers fell short of analysts' estimates of $424.3 million.

SS&C's GAAP operating income was $103.9 million, or 24.8% of GAAP revenues, for Q3 2017 compared to an operating income of $76.9 million, or 20.1% of GAAP revenues, in Q3 2016, representing a 35.1% growth. The Company's adjusted operating income totaled $170.1 million, or 40.5% of adjusted revenues, for the reported quarter versus $150.5 million, or 38.4% of adjusted revenues, in the prior year's comparable quarter.

For Q3 2017, SS&C's adjusted consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) increased 14.2% to $178.8 million on a y-o-y basis. The Company's adjusted consolidated EBITDA margin totaled 42.6% for the reported quarter.

SS&C's GAAP net income surged 65.8% to $64.2 million for Q3 2017 compared to $38.7 million in Q3 2016. On a fully diluted GAAP basis, the Company's earnings per share (EPS) was $0.30 in the reported quarter, up 57.9% compared to $0.19 in the year ago corresponding period.

For Q3 2017, SS&C's adjusted net income advanced 20.6% to $105.5 million compared to $87.5 million in Q3 2016. The Company's adjusted diluted EPS was $0.50 in the reported quarter, up 19.0% compared to $0.42 in the prior year's same quarter. SS&C's earnings were in-line with Wall Street's estimates of $0.50 per share.

Annual Run Rate Basis

For Q3 2017, SS&C's Annual Run Rate Basis (ARRB) recurring revenue was $1.58 billion, based on an adjusted recurring revenue of $395.0 million. This represents an increase of 9.6% from an adjusted recurring revenue of $360.3 million, and an ARRB revenue of $1.44 billion in Q3 2016; and a growth of 2.0% from an adjusted recurring revenue of $387.4 million, and an ARRB revenue of $1.55 billion for Q2 2017.

Cash Matters

SS&C ended Q3 2017 with $103.3 million in cash and cash equivalents and $2.27 billion in gross debt, for a net debt balance of $2.16 billion. The Company paid off $292.8 million of debt in the first nine months of 2017, bringing its net debt to consolidated EBITDA leverage ratio to 3.19x as of September 30, 2017.

SS&C generated net cash from operating activities of $307.1 million for the nine months ended September 30, 2017, up 29.6% compared to $237.0 million for the same period in 2016. SS&C's accounts receivable DSO was 51.2 days at the end of Q3 2017 compared to 52.7 days as of December 2016. The Company used $37.9 million of cash for capital expenditure and capitalized software, mostly for facility expansion and IT infrastructure.

Outlook

For Q4 2017, SS&C is forecasting adjusted revenue to be in the range of $427 million to $437 million; adjusted net income to be in the band of $110 million to $113.9 million; and diluted shares to be in the range of 212.8 million to 213.2 million.

For FY17, the Company is expecting cash from operating activities to be in the range of $485 million to $500 million, and capital expenditure to be in the band of 2.9% to 3.1% of revenues.

Stock Performance

SS&C Technologies' share price finished yesterday's trading session at $39.69, marginally declining 0.20%. A total volume of 676.06 thousand shares have exchanged hands. The Company's stock price surged 7.39% in the last three months, 8.68% in the past six months, and 24.07% in the previous twelve months. Additionally, the stock soared 38.78% since the start of the year. Shares of the Company have a PE ratio of 37.84 and have a dividend yield of 0.71%. The stock currently has a market cap of $8.20 billion.

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