Deluxe Q3 Results Beat View; 2021 Outlook In Line With Estimates

(RTTNews) - Payments and business technology company Deluxe Corporation (DLX), on Thursday reported a decline in net income for the third quarter primarily due to expenses related to the acquisition of First American.

Earnings and revenues however beat the Street's expectations.

Net income for the period was $12.5 million or $0.28 per share compared with $29.4 million or $0.70 per share during the same period a year ago. The latest earnings included $11.9 million in acquisition amortization from the First American acquisition, as well as increased interest expense associated with the transaction.

Adjusted income for the period was $47.4 million or $1.10 per share as compared to $61.6 million or $1.47 per share in the previous period.

On average, 3 analysts polled by the Thomson Reuters were expecting the company to report earnings of $1.08 per share. Analysts typically exclude one-time items.

Revenue for the third quarter was $532.1 million, a growth of 21.1 percent over the revenue of $439.5 million recorded in the third quarter of 2020, primarily due to the First American acquisition, which was closed on June 1. 3 analysts polled by Thomson Reuters were expecting the company to report revenues of $520.7 million.

For 2021, the company continues to expect revenue growth between 10 and 12 percent. The company's revenue guidance is pegged between $1.97 and $2.0 billion, which is in line with the estimate of $1.99 billion made by three analysts.

Shares of Deluxe Corporation are currently trading in pre-market at $36.71, down $1.33 or 3.50 percent from previous close.