Overview

* Cass Information Systems ( CASS ) Q2 revenue missed analyst expectations, per LSEG data

* Net income for Q2 rises to $8.9 mln, driven by improved net interest margin

* Co closed sale of TEM business, gaining $3.6 mln, repurchased 140,269 shares

Outlook

* Cass, which provides payment and information processing services and runs a bank expects freight rate momentum to support fee income.

* Company anticipates neutral profitability post-TEM business sale.

* Cass sees increased interest income from redeployment of sale proceeds.

Result Drivers

* NET INTEREST INCOME - Driven by growth in interest-earning assets and improved net interest margin, per CEO Martin Resch

* TEM BUSINESS SALE - Sale resulted in a gain of $3.6 million

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $44.40 $51 mln

Revenue mln (1

Analyst)

Q2 Net $8.86

Income mln

Q2 Net $19.48

Interest mln

Income

Q2 $38.12

Operatin mln

g

Expenses

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for Cass Information Systems Inc ( CASS ) is $50.00, about 10.8% above its July 16 closing price of $44.61

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)