Deluxe Earnings: Here’s Why Investors Like These Results

Deluxe Corp. (NYSE:DLX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.24%.

Deluxe Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.94% to $0.96 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 2.8% to $381.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Deluxe Corp. reported adjusted EPS income of $0.96 per share. By that measure, the company beat the mean analyst estimate of $0.88. It beat the average revenue estimate of $379.55 million.

Quoting Management: “We delivered another very strong quarter while continuing to advance our transformation,” said Lee Schram, CEO of Deluxe. “Revenue in the second quarter was at the upper end of our outlook, adjusted EPS exceeded our outlook and operating cash flow was strong, all driven by favorable performance particularly in both Small Business Services and Financial Services. Marketing solutions and other services revenue grew 21% over last year and will further benefit from the acquisition of VerticalResponse. Our strong first half of the year positions us well to grow revenue in 2013 for a fourth consecutive year.”

Key Stats (on next page)…

Revenue decreased 1.59% from $387.55 million in the previous quarter. EPS increased 5.49% from $0.91 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 a profit of $0.92 to a profit $0.93. For the current year, the average estimate has moved up from a profit of $3.63 to a profit of $3.68 over the last ninety days.

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