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: Shares of Cardtronics (NASDAQ:CATM), the world's largest ATM provider, rallied as much as 12% after reporting its fourth-quarter results and providing its fiscal 2013 guidance.
So what: The overall results for Cardtronics were slightly mixed, but definitely favored a bullish tone, as is evidenced by the double-digit move higher. For the quarter, revenue rose 14% to $198.4 million as profits jumped 14% to $0.41. Compared to Wall Street's estimates, revenue came in $9.16 million higher than expected and EPS was in line. Looking forward, Cardtronics forecast 2013 revenue in a range of $835 million to $850 million with EPS of $1.72-$1.79. Analysts were expecting only $822.8 million in revenue, but slightly higher profits at $1.80 per share. Cardtronics attributed its growth to increased transaction per ATM, unit growth expansion, and increased bank branding revenue with its financial partners.
Now what: The last time Cardtronics shaved a few cents off its EPS estimates, the Street clobbered it -- this time, it's being rewarded! As I noted in November, Cardtronics is as the precipice of realizing major synergies from its recent acquisitions, and it's proven time and again that it can grow organically (11% organic growth in the fourth quarter). Even after today's sizable pop, the company appears to be a nice value at 16 times the midpoint of its 2013 forecast, and I would encourage any investor to dig a bit deeper into Cardtronics.
Craving more input? Start by adding Cardtronics to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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