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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