Net 1 Technologies (NAS: UEPS) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Net 1 Technologies missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share expanded.
Gross margins shrank, operating margins dropped, net margins expanded.
Net 1 Technologies reported revenue of $90.7 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $92.6 million on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $92.8 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 $0.28. The two earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.17 for Q3 against -$0.47 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 64.2%, 420 basis points worse than the prior-year quarter. Operating margin was 13.8%, 790 basis points worse than the prior-year quarter. Net margin was 8.6%, 3,180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $105.6 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $390.2 million. The average EPS estimate is $0.85.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 526 members out of 536 rating the stock outperform, and 10 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Net 1 Technologies a green thumbs-up, and one 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 $13.50.
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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. 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.