XPS Pensions Group (LON:XPS) Announces Earnings Results

XPS Pensions Group (LON:XPS) posted its quarterly earnings results on Thursday. The company reported GBX 13 EPS for the quarter, Digital Look Earnings reports. The firm had revenue of £262.96 million for the quarter. XPS Pensions Group had a net margin of 10.11% and a return on equity of 15.48%.

Here are the key takeaways from XPS Pensions Group’s conference call:

• Revenue grew 13% and adjusted EBITDA rose 9%, with core performance even stronger after normalizing for the prior-year McCloud one-off and the Polaris acquisition. Management highlighted underlying organic revenue growth of 12% and underlying EBITDA growth of 15%.
• The business saw margin improvement, with underlying EBITDA margin up 70 basis points after adjusting for McCloud and higher National Insurance costs. Adjusted diluted EPS increased 8%, and the full-year dividend was raised 11%.
• Market conditions remain favorable, as pension schemes move from deficits to surpluses and face new funding and surplus-release regulation. Management sees a multi-year tailwind from more buyouts, run-on activity, and insurer support work.
• The Polaris acquisition is integrating well and is expanding XPS into broader insurance consulting opportunities. Management said the deal has already opened access to a much larger client set, especially in life insurance, with growing pipeline opportunities.
• AI is viewed as an opportunity to improve productivity, differentiation, and client service, with the company already building and deploying its own tools. XPS believes its scale, specialist focus, and existing tech platforms like Radar and Aurora position it well to benefit.

XPS Pensions Group Stock Performance

Shares of LON:XPS opened at GBX 317 on Friday. The company has a current ratio of 27.13, a quick ratio of 1.51 and a debt-to-equity ratio of 44.65. The company has a 50-day moving average price of GBX 308.13 and a 200-day moving average price of GBX 319.25. The company has a market cap of £648.15 million, a price-to-earnings ratio of 26.64 and a beta of 0.34. XPS Pensions Group has a 12 month low of GBX 275 and a 12 month high of GBX 392.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on XPS. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 440 price objective on shares of XPS Pensions Group in a research note on Friday. Canaccord Genuity Group reissued a “buy” rating and issued a GBX 469 price target on shares of XPS Pensions Group in a research note on Thursday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 485 price target on shares of XPS Pensions Group in a research note on Thursday, June 11th. Finally, Stifel Nicolaus reissued a “buy” rating and set a GBX 460 price objective on shares of XPS Pensions Group in a research note on Tuesday, April 21st. Six investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, XPS Pensions Group presently has an average rating of “Buy” and a consensus price target of GBX 456.50.

About XPS Pensions Group

XPS Group is a leading UK consulting and administration business specialising in the pensions and insurance sectors. A FTSE 250 company, XPS combines expertise and insight with advanced technology and analytics to address the needs of over 1,300 pension schemes and their sponsoring employers on an ongoing and project basis. We undertake pensions administration for over one million members and provide advisory services to schemes and corporate sponsors in respect of schemes of all sizes, including 83 with assets over £1bn.