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What: Heartland Payment Systems
So what: The company missed earnings expectations in seven of the prior nine quarters, making the first quarter's significant upside all the more of a positive surprise. Revenue of $112.7 million grew 9% year-over-year and came in above the consensus forecast of $110.8 million.
Now what: Processing/servicing costs and customer acquisition costs both declined from the year-ago quarter, showing that efforts to improve processing efficiency and sales productivity are positively impacting profits. The improvement appears sustainable. Management raised fiscal 2011 guidance to revenue growth of 8%-10% (up from 7%-9%) and non-GAAP EPS of $0.95-$0.99 (up from $0.95).
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