The 10-second takeaway
For the quarter ended June 30 (Q2), Deluxe beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Margins grew across the board.
Deluxe notched revenue of $371.0 million. The three analysts polled by S&P Capital IQ expected revenue of $356.8 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $346.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.85. The three earnings estimates compiled by S&P Capital IQ anticipated $0.78 per share. GAAP EPS of $0.83 for Q2 were 22% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.6%, 30 basis points better than the prior-year quarter. Operating margin was 20.4%, 60 basis points better than the prior-year quarter. Net margin was 11.4%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $360.0 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is $3.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 196 members out of 216 rating the stock outperform, and 20 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Deluxe a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deluxe is buy, with an average price target of $33.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Deluxe. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.