Higher One Earnings: Here’s Why Shares are Up Now

Higher One Inc. (NYSE:ONE) delivered a profit and beat Wall Street’s expectations, BUT 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 up 1.54%.

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Higher One Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.25 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Decreased 0.66% to $57.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Higher One Inc. reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $60.42 million.

Quoting Management: Mark Volchek, Chief Executive Officer, said, “I am extremely excited to announce the acquisition of Sallie Mae’s Campus Solutions business. This acquisition provides Higher One the opportunity to expand our refund and payments client base and further solidifies our competitive market leading position. We welcome the Campus Solutions team to the Higher One family and look forward to further enhancing our product and service offerings to schools and students.”

Key Stats (on next page)…

Revenue increased 15.26% from $49.8 million in the previous quarter. EPS increased 47.06% from $0.17 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 $0.11 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.75 to a profit of $0.66 over the last ninety days.

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