Net 1 Ueps Technologies Earnings: Here’s Why the Stock is Up Now

Net 1 Ueps Technologies Inc. (NASDAQ:UEPS) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.70%.

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Net 1 Ueps Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 82.14% to $0.05 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 22.55% to $111.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Net 1 Ueps Technologies Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.17. It beat the average revenue estimate of $111.07 million.

Quoting Management: “We are very pleased with the commitment demonstrated by the Net1 team to complete bulk enrollment for our SASSA implementation on schedule despite having to register nearly 40% more beneficiaries than originally planned,” said Dr. Serge Belamant, Chairman and Chief Executive Officer of Net1. “By April 30, 2013, we had registered over 20 million beneficiaries and issued more than 9.1 million cards. We are also delighted that a full bench of the Supreme Court of Appeal unanimously ruled in favor of Net1 and SASSA. We can now focus exclusively on providing best-in-class service to SASSA and the citizens of South Africa. Meanwhile, we continue to cooperate with the DOJ and SEC on their investigations, but as a result of these investigations, we continue to experience some adverse impact from the damage caused to our reputation, including our ability to execute certain aspects of our strategic plan,” he concluded.

Key Stats (on next page)…

Revenue decreased 0.31% from $111.44 million in the previous quarter. EPS decreased 72.22% from $0.18 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 $0.36 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.12 to a profit of $0.88 over the last ninety days.

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

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