Deluxe Q4 Profit Rises - Update

(RTTNews) - Deluxe Corp. (DLX) Thursday said its profit improved 7 percent for the fourth quarter, driven largely by revenue growth.

ST. Paul, Minnesota-based Deluxe's fourth-quarter profit rose to $45.7 million or $0.90 per share from $42.6 million or $0.83 per share last year.

Adjusted earnings improved to $1.04 per share from last year's $0.95 per share. Analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

The company said its bottom line growth was driven largely by better operating margins in Small Business Services and Financial Services and a lower effective tax rate.

Deluxe's revenues for the fourth quarter rose 7.8 percent to $417.8 million from $387.6 million in the prior-year quarter. Analysts had a consensus revenue estimate of $411.40 million for the quarter.

Revenue growth reflect 11.8 percent growth at Small Business Services segment and 5.5 percent growth at Financial Services division.

Looking forward, the company anticipates first-quarter earnings of $0.91 to $0.96 per share and revenues of $397 million to $405 million. Analysts currently expect earnings of $0.94 per share and revenues of $401.90 million for the first-quarter.

For the full year 2014, the company expect earnings in the range of $3.90 - $4.10 per share and revenue of $1.61 billion to $1.65 billion. Analysts currently sees earnings of $3.96 per share and revenues of $1.63 billion for 2014.

DLX is currently trading at $53.49, up $1.57 or 3.02%, on the NYSE.