Cass Information Systems misses Q2 revenue estimates
Overview
Cass Information Systems Q2 revenue missed analyst expectations, per LSEG data
Net income for Q2 rises to $8.9 mln, driven by improved net interest margin
Co closed sale of TEM business, gaining $3.6 mln, repurchased 140,269 shares
Outlook
Cass, which provides payment and information processing services and runs a bank expects freight rate momentum to support fee income.
Company anticipates neutral profitability post-TEM business sale.
Cass sees increased interest income from redeployment of sale proceeds.
Result Drivers
NET INTEREST INCOME - Driven by growth in interest-earning assets and improved net interest margin, per CEO Martin Resch
TEM BUSINESS SALE - Sale resulted in a gain of $3.6 million
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $44.40 mln | $51 mln (1 Analyst) |
Q2 Net Income | $8.86 mln | ||
Q2 Net Interest Income | $19.48 mln | ||
Q2 Operating Expenses | $38.12 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Cass Information Systems Inc is $50.00, about 10.8% above its July 16 closing price of $44.61
Press Release:
