NetSpend Holdings Earnings: Here’s Why Investors are Happy Now

NetSpend Holdings, Inc. (NASDAQ:NTSP) delivered a profit and met 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 4%.

NetSpend Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.15 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 16.86% to $89.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NetSpend Holdings, Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company met the mean analyst estimate of $0.15. It beat the average revenue estimate of $88.83 million.

Quoting Management: “We ended the fourth quarter hitting all of our targets and delivered strong financial results for 2012,” said Dan Henry, chief executive officer of NetSpend. “We had a banner year in terms of signing up new partners, executing our retail expansion efforts and growing our business in every channel. From the momentum we created last year, we expect a continued fast pace of growth in all areas of our business.”

Key Stats (on next page)…

Revenue increased 5.67% from $84.89 million in the previous quarter. EPS was the same at $0.15 as 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 $0.17 and has not changed. For the current year, the average estimate is a profit of $0.58, which is the same with that ninety days ago.

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