The 10-second takeaway
For the quarter ended March 31 (Q1), Deluxe beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share increased. GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, net margins increased.
Deluxe tallied revenue of $387.6 million. The two analysts polled by S&P Capital IQ anticipated revenue of $379.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.91. The two earnings estimates compiled by S&P Capital IQ predicted $0.87 per share. Non-GAAP EPS of $0.91 for Q1 were 3.4% higher than the prior-year quarter's $0.88 per share. GAAP EPS of $0.89 for Q1 were 3.5% higher than the prior-year quarter's $0.86 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%, 100 basis points worse than the prior-year quarter. Operating margin was 20.4%, 70 basis points worse than the prior-year quarter. Net margin was 11.8%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $378.0 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $3.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 201 members out of 223 rating the stock outperform, and 22 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 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 $45.00.
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