Cass Information Systems (NASDAQ:CASS) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Cass Information Systems (NASDAQ:CASS) released its earnings results on Thursday. The business services provider reported $0.81 EPS for the quarter, topping the consensus estimate of $0.80 by $0.01, FiscalAI reports. Cass Information Systems had a net margin of 18.94% and a return on equity of 15.46%. The firm had revenue of $27.53 million for the quarter, compared to the consensus estimate of $52.29 million.

Cass Information Systems Price Performance

NASDAQ CASS opened at $54.83 on Friday. The stock has a market capitalization of $702.15 million, a PE ratio of 18.84 and a beta of 0.39. The business has a 50 day simple moving average of $55.20 and a two-hundred day simple moving average of $51.85. Cass Information Systems has a 1-year low of $38.42 and a 1-year high of $59.63.

Cass Information Systems Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 14th. Shareholders of record on Friday, December 4th will be issued a dividend of $0.34 per share. The ex-dividend date is Friday, December 4th. This represents a $1.36 annualized dividend and a yield of 2.5%. This is a boost from Cass Information Systems’s previous quarterly dividend of $0.32. Cass Information Systems’s dividend payout ratio (DPR) is 46.74%.

Wall Street Analyst Weigh In

CASS has been the subject of a number of research reports. Piper Sandler restated a “neutral” rating and set a $61.00 target price (up from $52.00) on shares of Cass Information Systems in a research report on Thursday, August 6th. Zacks Research downgraded shares of Cass Information Systems from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 8th. Raymond James Financial downgraded shares of Cass Information Systems from an “outperform” rating to a “market perform” rating in a report on Friday. Finally, Weiss Ratings cut shares of Cass Information Systems from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Friday. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Cass Information Systems currently has a consensus rating of “Hold” and a consensus price target of $58.50.

Key Cass Information Systems News

Here are the key news stories impacting Cass Information Systems this week:

• Positive Sentiment: Third-quarter earnings beat expectations. Cass reported adjusted EPS of $0.81, above the $0.80 consensus estimate and up from $0.69 a year earlier. Revenue reached approximately $52.7 million, helped by higher freight rates that lifted fees. Cass Information Systems Non-GAAP EPS of $0.81, revenue of $52.69M
• Positive Sentiment: Dividend increased 6.3%. The company approved a quarterly dividend of $0.34 per share, up from $0.32, representing a $1.36 annualized payout and approximately a 2.4% yield. The dividend is payable December 14 to shareholders of record December 4. Cass Information Systems Approves Quarterly Dividend
• Neutral Sentiment: Results were solid but only modestly above forecasts. The small EPS beat and favorable freight-rate impact may already be reflected in the valuation, particularly with the stock trading near its 52-week high. Cass Information Systems Surpasses Q3 Estimates
• Negative Sentiment: Raymond James downgraded the shares. The firm moved its rating from Outperform to Market Perform, signaling less expected upside after the recent advance and likely making the downgrade the main reason for the stock’s decline. Raymond James Downgrades Cass Information Systems

Cass Information Systems Company Profile

Cass Information Systems, Inc (NASDAQ:CASS) provides payment and information-processing services to businesses. Its offerings are designed to help companies manage, audit and analyze expenditures associated with transportation, utilities, telecommunications and other recurring business expenses.

The company’s transportation services include freight invoice payment, auditing, rating, electronic data interchange and related information-management tools for shippers and logistics organizations.