Netspend Holdings
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Netspend Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Revenue details
Netspend Holdings booked revenue of $84.9 million. The 14 analysts polled by S&P Capital IQ hoped for revenue of $85.1 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $74.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.15. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.14 per share. GAAP EPS of $0.05 for Q3 were 44% lower than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 37.2%, 1,640 basis points worse than the prior-year quarter. Operating margin was 9.3%, 1,040 basis points worse than the prior-year quarter. Net margin was 5.2%, 600 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $88.6 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $350.3 million. The average EPS estimate is $0.57.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 36 members out of 36 rating the stock outperform, and members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 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 $10.55.
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