PMTS Earnings Prediction
The chart below shows how PMTS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PMTS sees a +4.84% change in stock price 10 days leading up to the earnings, and a +7.44% change 10 days following the report. On the earnings day itself, the stock moves by -0.38%. This data can give you a slight idea of what to expect for the next quarter's release.
PMTS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
125.10M
21.60%
0.28%
Gross Margin
33.09%
-0.06%
-5.05%
Operating Margin
12.74%
24.41%
-10.72%
Net Margin
5.41%
103.38%
420.19%
EPS
0.57
147.83%
418.18%
No Data Available
PMTS Earnings Analysis
CPI Card Group Inc Corporation (PMTS.O) Earnings Conference Call
Positive
Earnings Per Share Beat: CPI Card Group Inc. reported an EPS of $0.57, exceeding expectations of $0.52.
Prepaid Business Growth: The prepaid business grew 26% for the year, surpassing $100 million in net sales, driven by strong demand for PACS Gene solutions.
Debit and Credit Growth: The debit and credit business increased 4% for the year, with strong growth in the second half led by eco-focused contactless cards.
Eco-Friendly Card Sales: CPI has sold over 350 million eco-focused credit, debit, and prepaid card solutions since launch, with prepaid contributing over 200 million in 2023.
Strong Free Cash Flow: The company generated strong free cash flow exceeding $34 million for the full year while increasing capital spending investments.
Stock Purchase Investment: CPI purchased $9 million of stock at an average price of just over $18, viewing it as a strong investment for shareholders.
Debt Refinancing Strategy: The company refinanced its debt, issuing $285 million of new senior notes that extended debt maturities to 2029.
Positive Sales Growth Outlook: CPI expects mid to high single-digit net sales growth for 2025, led by the debit and credit business, indicating a positive outlook.
Adjusted EBITDA Growth: Adjusted EBITDA is projected to grow mid to high single digits in 2025, reflecting increased investments for future growth.
Market Expansion Impact: CPI's total addressable market has increased from $1.5 billion to approximately $2 billion due to expansion into new verticals.
Negative
Net Income Decline: Net income for the full year decreased 19% to $19.5 million, primarily due to $8.8 million of pretax debt refinancing costs incurred in 2024 and increased SG&A expenses.
EBITDA Margin Decline: Adjusted EBITDA margin declined from 20.1% to 19.1% primarily due to increased employee performance-based incentive compensation expense.
Gross Margin Decline: Gross margins decreased from 34.4% in the prior year quarter to 34.1% as operating leverage was offset by some negative product mix.
SG&A Expense Increase: SG&A increased $14.5 million from the prior year driven by increased employee performance-based incentive compensation, as well as investments in people and increased medical costs.
Interest Expense Increase: Interest expense increased $7.2 million for the year primarily due to the $5.8 million call premium paid to redeem senior notes due in 2026.
Adjusted EBITDA Outlook: The company expects adjusted EBITDA to be slightly down in the first quarter of 2025 due to timing of spending and mix.
Free Cash Flow Outlook: Free cash flow for 2025 is expected to be slightly below the 2024 level due to increased cash interest expense and higher rates.
PMTS FAQs
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PMTS Earning Call Sentiment
CPI Card Group Inc. (NASDAQ:PMTS) Q4 2024 Earnings Call Transcript
PMTS.O
-0.5%Positive
The earnings call presents mixed signals: strong sales growth, especially in prepaid segments, and increased shareholder returns are positive. However, declining margins, increased debt costs, and unclear management responses about key segments offset these positives. The Q&A reveals potential in the healthcare market and closed-loop prepaid market, but management's lack of clarity on margins and market transitions raises concerns. Overall, the positive growth is counterbalanced by financial pressures and uncertainties, leading to a neutral sentiment.
