Deluxe Corp. Q4 Results Top Estimates; Sees Q1, 2014 In Line With View

(RTTNews) - Deluxe Corp. (DLX) reported that its fourth-quarter net income increased to $45.7 million or $0.90 per share, from $42.6 million or $0.83 per share in the same quarter last year.

Earnings per share for the quarter increased 8.4% year-over-year driven primarily by stronger operating performance and lower interest expense, partially offset by a higher effective tax rate compared to 2012. The 2012 tax rate benefited from favorable discrete items.

GAAP earnings per share also includes in 2013, an after tax non-cash asset impairment charge of $0.06 per share related to the write-down of a customer relationship intangible asset in the Small Business Services segment and higher restructuring charges. Results for 2012 also included a charge of $0.07 per share related to the early retirement of debt.

Adjusted earnings per share improved to $1.04 from last year's $0.95. Analysts polled by Thomson Reuters expected the company to report earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items. The strong earnings performance was driven primarily by better operating margins in Small Business Services and Financial Services and a lower effective tax rate.

Total revenues for the quarter rose to $417.8 million from $387.6 million in the prior year quarter. Two analysts had consensus revenue estimate of $411.40 million for the quarter. Revenue increased 7.8% year-over-year, with the strongest performance in the Small Business Services segment which grew 11.8% followed by Financial Services which grew 5.5%.

For the first quarter of 2014, the company anticipates GAAP earnings per share to be in the range of $0.91 - $0.96, and revenue of $397 million - $405 million. Analysts expect the company to report earnings of $0.94 per share and revenues of $401.90 million for the first-quarter.

Looking ahead for full year 2014, the company expects GAAP earnings per share to be in the range of $3.90 - $4.10, and revenue of $1.610 billion - $1.650 billion. Street currently is looking for fiscal year 2014 earnings of $3.96 per share on annual revenues of $1.63 billion.