Net 1 Technologies Beats Expectations but Takes a Step Back Anyway
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 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. 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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