Computershare Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

Computershare (ASX:CPU) Full Year 2024 Results

Key Financial Results

• Revenue: US$2.97b (down 7.1% from FY 2023).
• Net income: US$492.9m (up 11% from FY 2023).
• Profit margin: 17% (up from 14% in FY 2023). The increase in margin was driven by lower expenses.
• EPS: US$0.82 (up from US$0.74 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Computershare Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 23%.

The primary driver behind last 12 months revenue was the Issuer Services segment contributing a total revenue of US$1.21b (41% of total revenue). Notably, cost of sales worth US$2.08b amounted to 70% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$330.1m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CPU's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Professional Services industry in Australia.

Performance of the Australian Professional Services industry.

The company's shares are up 7.0% from a week ago.

Risk Analysis

It is worth noting though that we have found 2 warning signs for Computershare that you need to take into consideration.

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