Will SS&C Technologies Holdings Inc’s (NASDAQ:SSNC) Earnings Grow In The Years Ahead?
In December 2017, SS&C Technologies Holdings Inc (NASDAQ:SSNC) released its most recent earnings announcement, which revealed that the business experienced a major tailwind, more than doubling its earnings from the prior year. Investors may find it useful to understand how market analysts view SS&C Technologies Holdings’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for SS&C Technologies Holdings
Analysts’ expectations for this coming year seems pessimistic, with earnings falling by a double-digit -23.09%. Over the medium term, earnings will begin to improve, rising year on year, and generating US$360.23M by 2021.
While it’s informative knowing the growth year by year relative to today’s level, it may be more beneficial evaluating the rate at which the earnings are moving every year, on average. The advantage of this method is that we can get a better picture of the direction of SS&C Technologies Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 2.23%. This means that, we can anticipate SS&C Technologies Holdings will grow its earnings by 2.23% every year for the next couple of years.
Next Steps:
For SS&C Technologies Holdings, there are three important factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is SSNC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SSNC is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SSNC? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
