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  5. CSU: Can I please have your comments on Constelllation's earnings. [Constellation Software Inc.]
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Q: Can I please have your comments on Constelllation's earnings. Still a top recommendation?
Asked by Brian on March 07, 2024
5i Research Answer:

CSU does not release adjusted earnings, but on a GAAP basis, CSU reported EPS of $6.64 for Q4 missing forecasts of $9.07. Revenue beat expectations of $2.27B coming in at $2.32B and displayed growth of 26% of which 6% was organic. Net income attributable to common shareholders decreased 7% to $141M. Cash flows from operations was $511M, an increase of 28%. Free cash flow available to shareholders increased 12% year-over-year to $325M. CSU completed numerous acquisitions for a total consideration of $463M. The company also has completed or has open commitments to acquire a number of businesses for a total consideration of $654M. Overall, this was a solid quarter despite the EPS miss and CSU provided minimal commentary as usual. CSU remains one of our top recommendations.