Deluxe Beats Estimates Yet Again
Deluxe (NYS: DLX) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Deluxe met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share increased significantly.
Gross margins were steady, operating margins increased, and net margins expanded.
Deluxe reported revenue of $366.4 million. The four analysts polled by S&P Capital IQ anticipated a top line of $364.0 million. Sales were 4.2% higher than the prior-year quarter's $351.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.83. The four earnings estimates compiled by S&P Capital IQ anticipated $0.81 per share on the same basis. GAAP EPS of $0.78 for Q4 were 15% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 64.5%, about the same as the prior-year quarter. Operating margin was 21.0%, 150 basis points better than the prior-year quarter. Net margin was 10.9%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $354.7 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $3.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 182 members out of 203 rating the stock outperform, and 21 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 outperform, with an average price target of $31.00.
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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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