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Heartland Payment Systems Beats on Both Top and Bottom Lines

Tuesday - 4/30/2013, 2:00am  ET

Heartland Payment Systems reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Heartland Payment Systems beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Heartland Payment Systems logged revenue of $146.8 million. The 14 analysts polled by S&P Capital IQ expected to see revenue of $144.0 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $470.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.47. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. Non-GAAP EPS of $0.47 for Q1 were 38% higher than the prior-year quarter's $0.34 per share. GAAP EPS of $0.51 for Q1 were 50% higher than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.3%, 240 basis points better than the prior-year quarter. Operating margin was 5.3%, 40 basis points better than the prior-year quarter. Net margin was 3.9%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $152.1 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $602.4 million. The average EPS estimate is $2.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 390 members out of 410 rating the stock outperform, and 20 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give Heartland Payment Systems a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heartland Payment Systems is outperform, with an average price target of $34.33.

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This article was originally published as Heartland Payment Systems Beats on Both Top and Bottom Lineson Fool.com

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