Blackhawk Network Holdings Earnings: Here’s Why Investors are Not Excited Now

Blackhawk Network Holdings (NASDAQ:HAWK) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5%.

Blackhawk Network Holdings Earnings Cheat Sheet

Revenue: Was the same at $225.9 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: Blackhawk Network Holdings reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $237.14 million.

Quoting Management: “We were pleased with continued growth in our operating revenues and earnings this quarter,” said Bill Tauscher, CEO. “Strong revenue growth in our program-managed Visa gift products and growth in the Cardpool exchange business contributed to a 21% increase in adjusted operating revenues. Load value growth moderated due to slow U.S. retail grocery sales in the early part of the quarter, the reduction of certain low margin promotional programs, and the discontinuance of our wholesale telecom business. However, load value growth improved to 19% during the most recent eight weeks (the last four weeks of the second fiscal quarter of 2013 and the first four weeks of the third fiscal quarter of 2013).”

Key Stats (on next page)…

Revenue increased 22.08% from $185.05 million in the previous quarter. EPS increased 75% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from $0 to a profit $0.06. For the current year, the average estimate has moved up from $0 to a profit of $1.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]