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CPI Card (PMTS) to Report Q3 Earnings: What's in the Offing?

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CPI Card Group Inc. (PMTS - Free Report) will report third-quarter 2019 earnings on Nov 6, before the bell.

The company’s earnings surprise history has not been impressive. It missed the Zacks Consensus Estimate in two of the last four quarters, delivering an average negative surprise of 340.1%.

Shares of CPI Card have declined 16.6% year to date against the 12.4% rally of the industry it belongs to.

Q3 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quar ter is pegged at $76.4 million, indicating year-over-year growth of 7.6%. A favorable mix of products and services, continued volume increase, and sales associated with new portfolio launch are likely to have benefited the top line. In the second quarter of 2019, revenues of $66.9 million increased 8.9% on a year-over-year basis.

As far as the bottom line is concerned, the consensus estimate is pegged at a loss of 6 cents per share. The company had reported break-even earnings in the year-ago quarter and EPS of 14 cents in the second quarter of 2019.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for CPI Card this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. 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 #2.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

Core-Mark Holding Company, Inc. (CORE - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

FleetCor Technologies, Inc. (FLT - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank #2.

Fidelity National Information Services, Inc. (FIS - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #3.

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