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CPI Card Group (PMTS) to Post Q3 Earnings: What's in Store?

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CPI Card Group Inc. (PMTS - Free Report) will report third-quarter 2018 results on Nov 7, before the bell.

The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 21.2%.

So far this year, shares of the company have lost 18.3% compared with the 0.4% decline of the industry it belongs to.

 

How Things Are Shaping Up for the Announcement

We expect CPI Card’s revenues to decline in the third quarter due to decrease in Non-EMV and other sales, card personalization and fulfillment, and EMV card revenues. The Zacks Consensus Estimate for revenues is pegged at $65 million, indicating year-over-year decline of 4.4%.

Strategic investments aimed at enhancing products, solutions and go-to-market strategy is likely to weigh on the bottom line in the to-be-reported quarter.

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, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CPI Card has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

CPI Card Group Inc. Price and EPS Surprise

 

Stocks Warranting a Look

Here are some stocks that you may want to consider as our model shows these have the right combination of elements to post a positive earnings surprise:

Broadridge Financial (BR - Free Report) has an Earnings ESP of +12.23% and a Zacks Rank #2. The company is slated to report first-quarter fiscal 2019 results on Nov 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenturyLink (CTL - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank #2. The company is slated to report third-quarter results on Nov 8.

Houghton Mifflin Harcourt (HMHC - Free Report) has an Earnings ESP of +6.90% and a Zacks Rank #3. The company is slated to report third-quarter 2018 results on Nov 8.

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