Higher One Earnings: Here’s Why Investors are Buying Shares Now

Higher One Inc. (NYSE:ONE) 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 1.03%.

Higher One Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.25% to $0.17 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Rose 19.34% to $49.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Higher One Inc. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.16. It beat the average revenue estimate of $48.84 million.

Quoting Management: Mark Volchek, Chief Executive Officer, said, “Higher One continues to be highly focused on reducing the cost of education by improving administrative efficiencies, providing financial literacy and low-cost financial services to college students, and improving graduation rates through better data collection and analysis. We made significant progress in 2012 bolstering our capabilities in all three of those areas. Despite the fact that the macro environment has put pressure on our financial results in the near-term, we are making investments in the business that positions us well for long-term growth.”

Key Stats (on next page)…

Revenue decreased 2.79% from $51.23 million in the previous quarter. EPS increased 6.25% from $0.16 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.26 to a profit $0.25. For the current year, the average estimate is a profit of $0.66, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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