Higher One Earnings: Here’s Why Investors are Not Excited Now

Higher One Inc. (NYSE:ONE) 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 2.16%.

Higher One Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 55.56% to $0.04 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Rose 2.8% to $40 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Higher One Inc. reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.07. It missed the average revenue estimate of $45.02 million.

Quoting Management: Mark Volchek, Chief Executive Officer, said, “The second quarter is a seasonally slower period for company revenue. While organic revenue was lower on a year over year basis, we were able to grow overall revenue as a result of the additions of the Campus Labs suite of data analytics software, and the Campus Solutions business, which we acquired from Sallie Mae during the second quarter. We have successfully completed the integration of our sales teams and are pleased with the overall feedback we are receiving from schools about the acquisition.”

Key Stats (on next page)…

Revenue decreased 30.29% from $57.38 million in the previous quarter. EPS decreased 84% from $0.25 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 $0.15 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $0.61 to a profit of $0.60 over the last ninety days.

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