We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
USA Technologies (USAT) Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
USA Technologies, Inc. is expected to release fourth-quarter fiscal 2018 results on Sep 25.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average positive surprise of 166.7%.
In the last reported quarter, the company reported earnings of 4 cents per share beating the Zacks Consensus Estimate of 1 cent. The figure also improved from the in line results reported in the year-ago quarter.
Revenues were $35.8 million, up 35% from the year-ago quarter. However, the figure lagged the Zacks Consensus Estimate of $38 million.
What to Expect
The Zacks Consensus Estimate for earnings shows an increase of 100% year over year to 2 cents per share for the to-be reported quarter. The consensus estimate for revenues is currently pegged at $44.2 million, up 29% year over year.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
USA Technologies is one of the chief payment technology service providers of cashless and mobile transactions in the retail markets. The company had effectively acquired Cantaloupe Systems, a provider of cloud and mobile solutions, for roughly $85 million.
The buyout is aimed at expanding USA Technologies’ product offering as well as customer reach. Notably, with Cantaloupe’s existing customer-base in the United States, Canada, Australia, and South America, USA Technologies is likely to expand its footprint globally. We believe that further acquisitions will add to the company’s growth.
USA Technologies had also announced a strategic alliance with Ingenico that will help the company to expand presence in North America and market share in unattended retail market worldwide.
International markets provide both growth and diversification benefits to USA Technologies. Major part of the company's revenue is generated from international regions such as the United States and Canadian market. These markets have the potential to generate growth over the coming years, led by a shift toward card usage and higher consumer spending. Strategic alliances with the governments, banks and corporations in these regions bode well for expansion into e-commerce in the emerging e-money sector.
Further, the company successful cross-selling wins is aiding it reach new customers, gain competitive advantage and expand its existing customer base. With a diverse self-service portfolio and associated benefits (cost and time savings), we believe that USA Technologies is poised for solid growth.
We believe all these factors will positively impact the company’s to-be-reported results.
However, USA Technologies is seeing some increased operating costs related to higher revenues, particularly related to some of its services such as loyalty and patents. This along with stiff competition and pricing pressure add to the woes.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
USA Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks With a Favorable Combination
Here are some companies you may want to consider as our model shows that these stocks have the right combination of elements to post an earnings beat:
Netflix, Inc. (NFLX - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3.
International Business Machines Corporation (IBM - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
USA Technologies (USAT) Q4 Earnings: What's in the Cards?
USA Technologies, Inc. is expected to release fourth-quarter fiscal 2018 results on Sep 25.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average positive surprise of 166.7%.
In the last reported quarter, the company reported earnings of 4 cents per share beating the Zacks Consensus Estimate of 1 cent. The figure also improved from the in line results reported in the year-ago quarter.
Revenues were $35.8 million, up 35% from the year-ago quarter. However, the figure lagged the Zacks Consensus Estimate of $38 million.
What to Expect
The Zacks Consensus Estimate for earnings shows an increase of 100% year over year to 2 cents per share for the to-be reported quarter. The consensus estimate for revenues is currently pegged at $44.2 million, up 29% year over year.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
USA Technologies is one of the chief payment technology service providers of cashless and mobile transactions in the retail markets. The company had effectively acquired Cantaloupe Systems, a provider of cloud and mobile solutions, for roughly $85 million.
The buyout is aimed at expanding USA Technologies’ product offering as well as customer reach. Notably, with Cantaloupe’s existing customer-base in the United States, Canada, Australia, and South America, USA Technologies is likely to expand its footprint globally. We believe that further acquisitions will add to the company’s growth.
USA Technologies had also announced a strategic alliance with Ingenico that will help the company to expand presence in North America and market share in unattended retail market worldwide.
International markets provide both growth and diversification benefits to USA Technologies. Major part of the company's revenue is generated from international regions such as the United States and Canadian market. These markets have the potential to generate growth over the coming years, led by a shift toward card usage and higher consumer spending. Strategic alliances with the governments, banks and corporations in these regions bode well for expansion into e-commerce in the emerging e-money sector.
Further, the company successful cross-selling wins is aiding it reach new customers, gain competitive advantage and expand its existing customer base. With a diverse self-service portfolio and associated benefits (cost and time savings), we believe that USA Technologies is poised for solid growth.
We believe all these factors will positively impact the company’s to-be-reported results.
However, USA Technologies is seeing some increased operating costs related to higher revenues, particularly related to some of its services such as loyalty and patents. This along with stiff competition and pricing pressure add to the woes.
USA Technologies, Inc. Price and EPS Surprise
USA Technologies, Inc. Price and EPS Surprise | USA Technologies, Inc. Quote
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
USA Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks With a Favorable Combination
Here are some companies you may want to consider as our model shows that these stocks have the right combination of elements to post an earnings beat:
Paychex, Inc. (PAYX - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Netflix, Inc. (NFLX - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3.
International Business Machines Corporation (IBM - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>