Netspend Holdings (Nasdaq: NTSP ) reported earnings on Aug. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Netspend Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins grew across the board.
Netspend Holdings reported revenue of $85.3 million. The 15 analysts polled by S&P Capital IQ expected revenue of $82.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $74.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS of $0.12 for Q2 were 50% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.1%, 200 basis points better than the prior-year quarter. Operating margin was 22.2%, 460 basis points better than the prior-year quarter. Net margin was 11.9%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $85.1 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $350.4 million. The average EPS estimate is $0.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 29 members out of 29 rating the stock outperform, and members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Netspend Holdings a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netspend Holdings is outperform, with an average price target of $9.55.
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