Deluxe's Q3 revenue rises on growth in Payments and Data segments
Overview
US payments and data firm's Q3 revenue rose 2.5% yr/yr, comparable adjusted revenue up 9.1%
Adjusted EPS for Q3 beat analyst expectations
GAAP net income and EPS fell due to acquisition costs and higher interest expense
Outlook
Deluxe raises 2026 revenue outlook to $2.13-$2.15 bln
Company now sees 2026 adjusted EBITDA at $470-$480 mln
Deluxe expects 2026 adjusted diluted EPS of $3.80-$4.00
Result Drivers
PAYMENTS AND DATA SEGMENTS - Accelerated mix shift toward Payments and Data segments drove overall enterprise growth, with combined segment revenue up over 21% yr/yr; Celero acquisition contributed to growth
CELERO INTEGRATION - Co said it is executing on Celero integration synergy targets, supporting profit margin and cash flow expansion
COSTS AND INTEREST EXPENSE - Co said acquisition-related costs and higher interest expense offset operating profit gains from increased revenue
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $1.06 | $0.95 (4 Analysts) |
Q3 EPS | $0.28 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commercial printing services peer group is "buy"
Wall Street's median 12-month price target for Deluxe Corporation is $32.00, about 45.5% above its November 3 closing price of $21.99
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)