After market close today, Constellation Software Inc. (TSE:CSU) (OTC:CNSWF), a provider of software and services to public and private sector markets, Q1-2023 earnings results. Please note that all figures are in U.S. dollars unless otherwise stated. The company’s results revealed a 34% rise in revenue to $1.92 billion, up from $1.43 billion in Q1 2022, beating the $1.76 billion consensus estimate. This increase was mainly due to CSU’s growth from acquisitions, as organic growth only amounted to 2% (5% in constant currency). For context, Constellation Software completed several acquisitions amounting to $452 million in aggregate cash consideration.
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Nonetheless, net income attributable to common shareholders came in at $94 million ($4.44 on a diluted per share basis) for Q1 2023, lower than the $98 million ($4.63 on a diluted per share basis) from Q1 2022.
On a positive note, cash flows from operations rose by 27% to $632 million compared to $498 million for the same period last year. Lastly, free cash flow available to shareholders also saw an uptick, rising by $129 million year-over-year to $453 million.
Is Constellation Software Stock a Buy, According to Analysts?
According to analysts, CSU stock comes in as a Strong Buy based on four Buys and one Hold assigned in the past three months. The average Constellation Software stock price target of C$3064.76 implies 16.5% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell CSU stock, the most accurate analyst covering the stock (on a one-year timeframe) is Paul Treiber from RBC Capital, with an average return of 25.08% per rating and a 93% success rate. See below.
