DELUXE CORPORATION Reports Fourth Quarter Earnings Results for FY2022 on February 2 2023.

Earnings Overview

Deluxe Corporation ($NYSE:DLX) announced their financial results for the fourth quarter of FY2022, which ended on December 31 2022, on February 2 2023. The total revenue for the quarter was USD 19.0 million, which represented a 37.7% increase from the previous year. Unfortunately, net income decreased by 1.2%, to USD 564.0 million, year over year.

Transcripts Simplified

For the fourth quarter, total comparable adjusted revenue improved 1.2% to $564 million. On a reported basis, revenue declined 1.2% year-over-year. We reported fourth quarter GAAP net income of $19 million or $0.44 per diluted share, up from $14 million or $0.32 per share in the fourth quarter of 2021. Adjusted EBITDA came in $112 million, a decrease of $3 million or 2.8% on a comparable adjusted basis from last year. For the full year, on a reported basis, we posted total revenue of $2.24 billion, up 10.7% year-over-year and above our guided range.

As Barry mentioned, comparable adjusted revenue increased 5.2% year-over-year. We reported full year GAAP net income of $65 million or $1.50 per share for the year, up from $63 million or $1.45 per share in 2021. Full year adjusted EBITDA was $418 million, an increase of $10 million or 2.5% as reported from last year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Deluxe Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Deluxe Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Deluxe Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Deluxe Corporation are shown below. More…

Price History

On Thursday, the company’s stock opened at $20.2 and closed at $21.2, indicating an increase of 4.8% from previous closing price of $20.2. The stock’s performance is indicative of the company’s improved financial results and investors’ confidence in its future prospects. The company’s CEO commented on the earnings results: “We are pleased to report another quarter of strong financial results, driven by our focus on operational efficiencies and innovation.

We remain committed to providing value to our shareholders while continuing to invest in capabilities and strategies that will position us for continued success in the future.” DELUXE CORPORATION is well-positioned to continue its successful operations into FY2023 and beyond, as evidenced by their strong fourth quarter earnings results. With their innovative approach and focus on operational efficiency, they are well-poised to deliver continued growth and performance to their shareholders. Live Quote…

Analysis

GoodWhale conducted an analysis of DELUXE CORPORATION‘s wellbeing and found that, according to the Star Chart, DELUXE CORPORATION has a high health score of 7/10 with regard to its cashflows and debt, indicating it is capable of paying off debt and funding future operations. A further breakdown of DELUXE CORPORATION’s performance showed it is strong in profitability, medium in asset and dividend, and weak in growth. Taking into account these various factors, DELUXE CORPORATION was classified as a ‘rhino’, which implies a company has achieved moderate revenue or earnings growth. Given this analysis, investors interested in steady returns may be drawn to DELUXE CORPORATION’s current performance. Those looking for rapid growth may, however, be less likely to invest in such a company. More…

Peers

Deluxe Corp is in the business of providing software solutions. Its competitors are Ilkka Oyj, Specificity Inc, and DM Solutions Co Ltd.

– Ilkka Oyj ($LTS:0IGW)

Ilkka Oyj is a Finnish company that produces and supplies wood products. It has a market cap of 110.82M as of 2022 and a Return on Equity of 2.9%. The company is involved in the production of lumber, pulp, paper, and energy. It also provides services related to forestry, real estate, and environmental protection.

– Specificity Inc ($OTCPK:SPTY)

Based in New York, Specificity Inc is a biotechnology company that focuses on the development of cancer treatments. The company has a market capitalization of 11.71 million as of 2022 and a return on equity of 189.94%. Specificity Inc’s products are designed to target specific types of cancer cells, which the company believes will result in more effective and less toxic treatments. In addition to its cancer treatments, Specificity Inc is also developing treatments for other diseases, such as Alzheimer’s disease and Parkinson’s disease.

– DM Solutions Co Ltd ($TSE:6549)

The company’s market cap as of 2022 is 2.39B, and its ROE is 5.37%. The company provides software development services and solutions.

Summary

Investors responded positively to the earnings announcement by DELUXE CORPORATION for the fourth quarter of FY2022, with the stock price increasing on the same day. Total revenue for the quarter was USD 19.0 million, an impressive 37.7% increase from the previous year.

However, net income decreased by 1.2% year over year, to USD 564.0 million. Despite the slight decrease in net income, investors are still confident in the company’s performance and potential for growth in the near future. It remains to be seen how further announcements from DELUXE CORPORATION will impact the stock price, and whether or not these earnings results will be sustained in the long-term.