SS&C Technologies (SSNC) Tops Q4 EPS by 8c, Revenues Beat; Offers 1Q & FY21 EPS/Revenue Guidance

SS&C Technologies (NASDAQ: SSNC) reported Q4 EPS of $1.13, $0.08 better than the analyst estimate of $1.05. Revenue for the quarter came in at $1.21 billion versus the consensus estimate of $1.16 billion.

Fourth Quarter and Full Year 2020 Highlights:

• SS&C generated net cash from operating activities of $1,184.7 million for the twelve months ended December 31, 2020.
• We paid down $738.2 million in debt in 2020 to bring our net leverage ratio and net secured leverage ratio to 3.39 times and 2.31 times consolidated EBITDA, respectively.
• Repurchased 3.7 million shares of common stock in 2020 at an average price of $60.99 per shares for $227.7 million.
• SS&C spent $471.0 million on research & development and capitalized software in 2020, and acquired three businesses for $138.9 million, a total of over $600 million.
• Launched SS&C's Blue Sky Portal, a dedicated cloud-based technology solution to help investment managers comply with state Blue Sky laws.
• SS&C Health completed the new COVAX Program, focused on ensuring the successful completion of the COVID Vaccine series for members receiving the vaccination from SS&C Health partner pharmacies.

"SS&C's 2020 financial results prove the resiliency of our business model, the stability of our client base, and the dedication of our workforce. Despite the many challenges this year presented, we were able to grow earnings in the double digits, hold margins steady, complete three acquisitions, while keeping our employees safe," says Bill Stone, Chairman and Chief Executive Officer. "SS&C generates nearly 25% of our revenue in operating cash, which demonstrates the power of our business model. 2021 is the third year anniversary of our 2018 deployment of $8.3 billion in capital to acquire DST Systems, Eze Software, and Intralinks. Our adjusted earnings per share have grown from $1.93 in 2017, to $2.92 in 2018, to $3.83 in 2019 and $4.30 in 2020. The 4-year compounded growth rate in adjusted earnings per share is 22.2%. We believe cash from operations and adjusted earnings per share are good proxies for the health of our business."

"We have also been meeting with major shareholders and have begun a significant change to our executive compensation system and overall corporate governance. SS&C has a 35-year history of adapting to change and in February of 2021 we have never had more opportunity, more resources to pursue these opportunities, or a more talented workforce. I want to thank our employees, customers and suppliers for focusing, collaborating and accomplishing our 2020 goals. We look at 2021 with increased optimism."

GUIDANCE:

SS&C Technologies sees Q1 2021 EPS of $1.05-$1.11, versus the consensus of $1.07. SS&C Technologies sees Q1 2021 revenue of $1.158-1.198 billion, versus the consensus of $1.18 billion.

SS&C Technologies sees FY2021 EPS of $4.36-$4.64, versus the consensus of $4.44. SS&C Technologies sees FY2021 revenue of $4.685-4.875 billion, versus the consensus of $4.77 billion.

For earnings history and earnings-related data on SS&C Technologies (SSNC) click here.

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