Overview

* Constellation Q2 revenue rises 15% to $2.84 bln, missing analyst estimates

* Net income falls 68% to $56 mln, $2.66 per diluted share

* Cash flows from operations increase 63% to $433 mln, Free cash flow available to shareholders rises 20% to $220 mln

Result Drivers

* ACQUISITIONS - Revenue growth driven by acquisitions, contributing significantly to the 15% increase in Q2 revenue

* ORGANIC GROWTH - Company reported 5% organic growth, with foreign exchange adjustments adding 4%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $2.84 $2.87

Revenue bln bln (6

Analysts

)

Q2 EPS $2.66

Q2 Net $56 mln

Income

Q2 Free $220 mln

Cash

Flow

Q2 $433 mln

Operatin

g Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Constellation Software Inc ( CNSWF ) is C$5,550.00, about 16.2% above its August 7 closing price of C$4,650.01

* The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 36 three months ago

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.)