The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Netspend Holdings beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins contracted across the board.
Netspend Holdings logged revenue of $89.7 million. The 13 analysts polled by S&P Capital IQ expected revenue of $88.7 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $76.8 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 $0.15. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS of $0.13 for Q4 were 18% higher than the prior-year quarter's $0.11 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 52.5%, 50 basis points worse than the prior-year quarter. Operating margin was 19.6%, 250 basis points worse than the prior-year quarter. Net margin was 11.3%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $107.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $412.2 million. The average EPS estimate is $0.76.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 38 members out of 38 rating the stock outperform, and members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Netspend Holdings a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netspend Holdings is outperform, with an average price target of $12.00.
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