Why SS&C Technologies Stock Rose 15.5% Last Month

What happened

Shares of SS&C (NASDAQ: SSNC) jumped 15.5% in November, according to data from S&P Global Market Intelligence. The company reported third-quarter results after the market closed on Oct. 31, posting a sales and earnings beat that propelled big stock price gains.

SSNC data by YCharts.

SS&C recorded non-GAAP (adjusted) earnings per share of $0.93 on sales of $1.15 billion, topping the average analyst targets for per-share earnings of $0.89 on sales of $1.14 billion. The fintech services company also raised its full-year sales outlook.

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So what

SS&C’s cash flow from operations in the third quarter climbed roughly 134% year over year to reach $755 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the third quarter rose 21.8% year over year to $445.8 million. The company also announced that it had bought back 1.3 million shares at an average price of $45 per share and paid down $629.1 million of debt across the first three quarters of the year — reducing its debt-to-EBITDA ratio to 4.05.

Now what

SS&C stock has dipped roughly 1.4% in December’s trading so far.

SSNC data by YCharts.

The company projects that fourth-quarter revenue will come in between $1.154 billion and $1.184 billion with net income for the period expected to be between $247 million and $264 million.

Full-year sales are projected to be between $4.61 billion and $4.64 billion, and adjusted net income for the year is now expected to be between $973.3 million and $990.3 million. The company had previously been guiding for sales between $4.571 billion and $4.631 billion, and adjusted net income between $947.5 million and $988.5 million.

SS&C is valued at roughly 16 times this year’s expected earnings and 3.2 times expected sales.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends SS&C Technologies Holdings. The Motley Fool has a disclosure policy.

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