Heartland Payment Systems
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Heartland Payment Systems crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Heartland Payment Systems booked revenue of $534.2 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $140.5 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $531.9 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 $0.53. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share. GAAP EPS of $0.48 for Q3 were 55% higher than the prior-year quarter's $0.31 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 14.4%, 370 basis points better than the prior-year quarter. Operating margin was 6.3%, 220 basis points better than the prior-year quarter. Net margin was 3.6%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $137.5 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $542.0 million. The average EPS estimate is $1.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members out of 390 rating the stock outperform, and 21 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 137 give Heartland Payment Systems a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heartland Payment Systems is hold, with an average price target of $34.50.
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