Why Heartland Payment Systems, Inc. Shares Jumped Today

Is Heartland's pop meaningful? Or just another movement?

Apr 30, 2014 at 3:33PM

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 Heartland Payment Systems, (NYSE:HPY) rose more than 10% early Wednesday after the payment-processing specialist released in-line first-quarter results and stronger-than-expected 2014 revenue guidance.

So what: Quarterly revenue rose 5.9%, to $155.5 million, which translated to adjusted earnings per share of $0.52. Analysts, on average, were looking for earnings of $0.52 per share on sales of $156 million.

For the full year 2014, Heartland reaffirmed guidance for adjusted earnings per share in the range of $2.37 to $2.41, which is also in line with expectations. In addition, Heartland called for 2014 net revenue between $645 million and $660 million, the midpoint of which stands well above analysts' estimates for revenue of $646.26 million. 

Finally, Heartland noted its board has declared an $0.085 per-share quarterly dividend, and the company bought and retired roughly 696,000 shares last quarter for $28.7 million under its existing $75 million share repurchase plan.

Now what: Heartland CEO Robert Carr also appeased investors' worries by adding, "While it is has been widely reported that severe winter weather had an adverse impact on consumer spending in the first quarter, probably even more pronounced at Main Street merchants, our relationship managers were nevertheless successful in fighting the elements, signing up new merchants and extending our streak of double-digit new margin installed growth."

In the end, this was a solid quarter by any measure, and I think shares of Heartland look reasonably priced trading around 17 times this year's expected earnings. If Heartland continues to execute and rewards investors for their patience with further dividends and share repurchases, I see no reason the stock can't continue rewarding patient investors from here.

Your credit card may soon be completely worthless
Speaking of payments, did you know the plastic in your wallet is about to go the way of the typewriter, the VCR, and the eight-track tape player? When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers