Net 1 Ueps Technologies Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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