Heartland Payment Systems Earnings: Here’s Why the Stock is Rising Now

Heartland Payment Systems, Inc. (NYSE:HPY) 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 6.86%.

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Heartland Payment Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.51 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Decreased 68.8% to $146.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Heartland Payment Systems, Inc. reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.40. It beat the average revenue estimate of $144.06 million.

Quoting Management: Robert O. Carr, Chairman and CEO, said, “Financial results for the first quarter of 2013 were the best of any first quarter in the Company’s history, extending the record results of the last two years. Card processing volumes continue to grow as we strengthen merchant relationships by enhancing our product suite to bring additional value to their businesses. In particular, we are excited about the growth prospects represented by our new mobile applications, including those developed through partnerships, such as that announced with LevelUp in the first quarter. Our sales organization once again achieved record new business productivity, with the best quarterly new margin installed in several years, and our strategy to add new relationship managers is gaining traction as we increased relationship manager count in the quarter, a key to further penetrating the market and sustaining our growth. The very encouraging early results of our latest acquisitions are not only exciting in their own right, but also in how they provide synergies that are enhancing the value of the entire Heartland franchise. And, despite the investment in integration and new business initiatives in the quarter, we remain vigilant in improving our efficiency and productivity to drive an ever increasing proportion of our growth to the bottom line and build value for shareholders.”

Key Stats (on next page)…

Revenue decreased 70.06% from $490.28 million in the previous quarter. EPS increased 34.21% from $0.38 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.52 and has not changed. For the current year, the average estimate has moved up from a profit of $1.92 to a profit of $1.94 over the last ninety days.

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