CPI Card Group (NASDAQ:PMTS) Announces Earnings Results, Beats Expectations By $0.06 EPS

CPI Card Group (NASDAQ:PMTS - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.06, Zacks reports. The company had revenue of $147.11 million during the quarter, compared to analysts' expectations 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 Down 5.1%

CPI Card Group stock opened at $15.17 on Thursday. The business's 50-day moving average price is $15.60 and its two-hundred day moving average price is $14.69. The stock has a market cap of $173.85 million, a PE ratio of 14.87 and a beta of 1.10. CPI Card Group has a 12-month low of $10.81 and a 12-month high of $25.50.

Institutional Investors Weigh In On CPI Card Group

Large investors have recently modified their holdings of the stock. Wasatch Advisors LP raised its stake in CPI Card Group by 56.3% in the second quarter. Wasatch Advisors LP now owns 357,754 shares of the company's stock valued at $8,486,000 after purchasing an additional 128,808 shares in the last quarter. Vector Capital Management L.P. raised 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 worth $6,954,000 after buying an additional 71,891 shares during the last quarter. Aristeia Capital L.L.C. bought a new position in CPI Card Group in the fourth quarter worth approximately $597,000. Monimus Capital Management LP increased its stake in CPI Card Group by 131.2% in the 4th quarter. Monimus Capital Management LP now owns 67,257 shares of the company's stock worth $987,000 after buying an additional 38,170 shares in the last quarter. Finally, Creek Drive Management Group LLC bought a new position in shares of CPI Card Group during the 4th quarter valued at approximately $440,000. Hedge funds and other institutional investors own 22.08% of the company's stock.

Analyst Upgrades and Downgrades

PMTS has been the subject of a number of research reports. Roth Mkm restated a "buy" rating and issued a $25.00 price objective on shares of CPI Card Group in a report on Tuesday. Lake Street Capital reissued a "buy" rating and set a $27.00 target price on shares of CPI Card Group in a research report on Wednesday. Wall Street Zen upgraded CPI Card Group from a "buy" rating to a "strong-buy" rating in a research note on Sunday, April 5th. Weiss Ratings upgraded shares of CPI Card Group from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday. Finally, DA Davidson reaffirmed a "buy" rating and set a $30.00 target price on shares of CPI Card Group in a research note on Wednesday, March 11th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $27.50.

About CPI Card Group

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.