The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Deluxe beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins dropped, operating margins shrank, net margins increased.
Deluxe reported revenue of $387.6 million. The two analysts polled by S&P Capital IQ foresaw revenue of $380.8 million on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $366.4 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 $0.95. The two earnings estimates compiled by S&P Capital IQ predicted $0.85 per share. GAAP EPS of $0.83 for Q4 were 6.4% higher than the prior-year quarter's $0.78 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 64.5%, 40 basis points worse than the prior-year quarter. Operating margin was 20.7%, 60 basis points worse than the prior-year quarter. Net margin was 11.0%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $376.1 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $1.53 billion. The average EPS estimate is $3.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 205 members out of 226 rating the stock outperform, and 21 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Deluxe a green thumbs-up, and six 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 $37.00.
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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 co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere