SS&C Technologies and Gentex Shares Drop on Weak Profit and Outlook

what happened

On Friday, Shares of SS&C Technologies Holdings fell 5.4% to $84.12 after the company reported lower quarterly profit and offered soft guidance, according to Dow Jones Newswires. The stock is down 3.7% so far this year. The financial technology provider expects full-year adjusted revenue of $6.74 billion to $6.78 billion, while analysts had expected $6.78 billion. For the fourth quarter, it forecasts $1.7 billion to $1.74 billion, below the $1.75 billion analysts anticipated.

In the third quarter, the company earned $198.9 million, or 83 cents a share, versus $210 million, or 83 cents, a year earlier. Adjusted revenue fell 7.8% to $1.69 billion, in line with FactSet estimates. Adjusted earnings were $1.78 per share, slightly above the $1.77 expected.

Gentex shares also dropped on Friday, down 5.8%, and are off 11.2% year to date. The supplier narrowed its full-year revenue outlook to $2.65 billion from a previous range of $2.65 billion to $2.75 billion. It expects global light vehicle production to fall about 4% in the fourth quarter and about 2% for the year. Third-quarter profit was $90.6 million, or 43 cents a share, down from $101 million, or 46 cents, a year earlier. Adjusted earnings of 47 cents missed the 50 cents FactSet analysts expected, and revenue of $647.7 million came in below the $669.7 million forecast.

why it matters

Both reports point to pressure on margins and demand in different sectors: fintech software and automotive electronics. For Gentex, the expected drop in light vehicle output directly affects its customer base. Weak guidance often weighs on valuations more than the quarterly numbers themselves.

market impact

SS&C and Gentex stocks: weak outlooks pressure share prices; Gentex depends on vehicle output

tags

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