CPI Card Group (NASDAQ:PMTS) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

CPI Card Group (NASDAQ:PMTS) announced its quarterly earnings results on Tuesday. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.06, Zacks reports. The company had revenue of $147.11 million during the quarter, compared to the consensus estimate of $134.69 million. CPI Card Group had a net margin of 2.15% and a negative return on equity of 82.56%.

Here are the key takeaways from CPI Card Group’s conference call:

• Revenue rose 20% to $147 million in Q1, driven by a 35% increase in Secure Card Solutions that included a $16 million contribution from Arroweye.
• Adjusted EBITDA increased 9%, free cash flow was $10.1 million, and net leverage improved to just below 3.0x, while management affirmed its full‑year guidance (high single‑digit revenue growth; low‑ to mid‑single‑digit Adjusted EBITDA growth).
• Net income declined 57% to $2.1 million due to roughly $3 million of pre‑tax integration costs and higher production costs (including ~$2 million of incremental depreciation and $1.2 million of tariffs), and gross margin fell to 30.0% from 33.2%.
• Prepaid Solutions revenue declined 17% in Q1 because of timing of customer orders, which weighed on margins, though management expects sequential improvement and full‑year growth.
• Management highlighted strategic growth drivers — an expanded referral agreement with Fiserv, expected >15% growth in Integrated PayTech (instant issuance/digital), strong contactless/metal demand, and pilots for chip‑embedded prepaid cards — as catalysts for longer‑term growth.

CPI Card Group Stock Up 2.4%

PMTS traded up $0.36 during trading on Thursday, reaching $15.53. 48,837 shares of the stock traded hands, compared to its average volume of 54,457. The stock has a market capitalization of $177.96 million, a PE ratio of 15.23 and a beta of 1.10. The stock’s 50-day moving average is $15.60 and its 200 day moving average is $14.69. CPI Card Group has a 12 month low of $10.81 and a 12 month high of $25.50.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on PMTS. Wall Street Zen raised shares of CPI Card Group from a “buy” rating to a “strong-buy” rating in a research note on Sunday, April 5th. Roth Mkm reissued a “buy” rating and issued a $25.00 price objective on shares of CPI Card Group in a research note on Tuesday. Weiss Ratings raised shares of CPI Card Group from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday. Lake Street Capital reaffirmed a “buy” rating and set a $27.00 price target on shares of CPI Card Group in a research report on Wednesday. Finally, DA Davidson reaffirmed a “buy” rating and set a $30.00 price target on shares of CPI Card Group in a research report on Wednesday, March 11th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $27.50.

Institutional Trading of CPI Card Group

Institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in CPI Card Group by 5.7% in the 3rd quarter. Vanguard Group Inc. now owns 498,101 shares of the company’s stock valued at $7,541,000 after acquiring an additional 26,848 shares in the last quarter. Vector Capital Management L.P. lifted its position in CPI Card Group by 18.6% in the 3rd quarter. Vector Capital Management L.P. now owns 459,314 shares of the company’s stock valued at $6,954,000 after acquiring an additional 71,891 shares in the last quarter. Wasatch Advisors LP lifted its position in CPI Card Group by 56.3% in the 2nd quarter. Wasatch Advisors LP now owns 357,754 shares of the company’s stock valued at $8,486,000 after acquiring an additional 128,808 shares in the last quarter. Geode Capital Management LLC lifted its position in CPI Card Group by 5.2% in the 4th quarter. Geode Capital Management LLC now owns 145,450 shares of the company’s stock valued at $2,136,000 after acquiring an additional 7,236 shares in the last quarter. Finally, Marshall Wace LLP lifted its position in CPI Card Group by 11.9% in the 2nd quarter. Marshall Wace LLP now owns 102,834 shares of the company’s stock valued at $2,439,000 after acquiring an additional 10,930 shares in the last quarter. Institutional investors own 22.08% of the company’s stock.

CPI Card Group Company Profile

CPI Card Group, Inc (NASDAQ: PMTS) is a leading provider of payment, identification and related credential solutions for financial institutions, governments and private enterprises. The company specializes in the design, manufacturing and personalization of secure plastic and metal cards, including EMV chip, magnetic-stripe and contactless cards. CPI Card Group also offers digital credentialing services and cloud-based card management tools that enable real-time controls, mobile wallet integration, fraud monitoring and analytics.

With a focus on security and innovation, CPI Card Group integrates advanced features such as holograms, microprinting, RFID/NFC technology and laser-engraved artwork into its card products.