Constellation Software misses expectations despite improved Q2 results

TORONTO – Constellation Software Inc. missed expectations despite posting improved second-quarter results.

The Toronto-based technology firm, which reports in U.S. dollars, says its net income attributable to common shareholders was US$88 million or US$4.16 per share, up seven per cent from US$83 million or US$3.90 per share a hear earlier.

Revenues for the three months ended June 30 increased 35 per cent to US$1.25 billion from US$922 million in the second quarter of 2020 and included 14 per cent organic growth.

Analysts on average expected Constellation would report US$6.21 per share on US$1.26 billion of revenues, according to financial data firm Refinitiv.

Cash flows from operations decreased 28 per cent to US$171 million while free cash flow available to shareholders was US$145 million, down from US$190 million in the prior year.

Constellation, which acquires, manages and builds vertical market software businesses. says it would pay a dividend of US$1 per share on Oct. 8 to all shareholders as of Sept. 17.

This report by The Canadian Press was first published Aug. 6, 2021.

Companies in this story: (TSX:CSU)