Net 1 Ueps Technologies Beats Analyst Estimates on EPS

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Net 1 Ueps Technologies (NAS: UEPS) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Net 1 Ueps Technologies missed slightly on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.

Gross margins contracted, operating margins dropped, and net margins improved.

Revenue details
Net 1 Ueps Technologies booked revenue of $92.1 million. The two analysts polled by S&P Capital IQ predicted revenue of $93.5 million on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $89.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.39. The two earnings estimates compiled by S&P Capital IQ forecast $0.37 per share on the same basis. GAAP EPS of $0.56 for Q2 were 155% higher than the prior-year quarter's $0.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.9%, 430 basis points worse than the prior-year quarter. Operating margin was 22.0%, 270 basis points worse than the prior-year quarter. Net margin was 27.3%, 1,610 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $90.6 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $375.3 million. The average EPS estimate is $1.55.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 545 members out of 557 rating the stock outperform, and 13 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Net 1 Ueps Technologies a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Net 1 Ueps Technologies is buy, with an average price target of $12.50.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Net 1 Ueps Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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