Why Cardtronics Shares Paid Out for Investors

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cardtronics (NASDAQ: CATM  ) , the world's largest ATM provider, rallied as much as 12% after reporting its fourth-quarter results and providing its fiscal 2013 guidance.

So what: The overall results for Cardtronics were slightly mixed, but definitely favored a bullish tone, as is evidenced by the double-digit move higher. For the quarter, revenue rose 14% to $198.4 million as profits jumped 14% to $0.41. Compared to Wall Street's estimates, revenue came in $9.16 million higher than expected and EPS was in line. Looking forward, Cardtronics forecast 2013 revenue in a range of $835 million to $850 million with EPS of $1.72-$1.79. Analysts were expecting only $822.8 million in revenue, but slightly higher profits at $1.80 per share. Cardtronics attributed its growth to increased transaction per ATM, unit growth expansion, and increased bank branding revenue with its financial partners.

Now what: The last time Cardtronics shaved a few cents off its EPS estimates, the Street clobbered it -- this time, it's being rewarded! As I noted in November, Cardtronics is as the precipice of realizing major synergies from its recent acquisitions, and it's proven time and again that it can grow organically (11% organic growth in the fourth quarter). Even after today's sizable pop, the company appears to be a nice value at 16 times the midpoint of its 2013 forecast, and I would encourage any investor to dig a bit deeper into Cardtronics.

Craving more input? Start by adding Cardtronics to your free and personalized watchlist so you can keep up on the latest news with the company.

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Related Tickers

9/23/2016 4:00 PM
CATM $43.65 Down -0.73 -1.64%
Cardtronics CAPS Rating: *