CPI Card Group Inc. ( (PMTS) ) has released its Q3 earnings. Here is a breakdown of the information CPI Card Group Inc. presented to its investors.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
CPI Card Group Inc., a leading payments technology company, specializes in providing a wide range of payment card and digital solutions, including Software-as-a-Service-based instant issuance, primarily serving the U.S. market.
In its third-quarter 2024 earnings report, CPI Card Group Inc. announced an 18% increase in net sales to $125 million, driven by robust sales in its debit and credit card segments. However, the company’s net income decreased significantly due to refinancing costs, even as adjusted EBITDA saw an 18% uptick, reflecting the company’s commitment to growth and market expansion.
Key financial highlights include a 19% increase in debit and credit segment sales, particularly in eco-focused contactless cards, and a 13% growth in the prepaid debit segment. The company’s gross profit margin improved along with a significant increase in income from operations. Despite a rise in sales, net income was impacted by $8.8 million in debt refinancing costs. CPI Card Group also announced a successful debt refinancing and share repurchase program, which contributed to its strategic positioning.
Looking forward, CPI Card Group has revised its financial outlook for 2024, anticipating mid-to-high single-digit growth in net sales and a low single-digit increase in adjusted EBITDA. The company expects its free cash flow to be slightly below 2023 levels, with a stable net leverage ratio, indicating a cautious yet optimistic outlook for continued growth in the evolving payments landscape.
