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: 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).
Interested in more info on Heartland Payment Systems? Add it to your watchlist by clicking here.
Fool contributor Cindy Johnson does not own shares of any company named above. 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.