Blackhawk Network (HAWK) Tops Q3 EPS by 7c
Blackhawk Network (NASDAQ: HAWK) reported Q3 EPS of $0.18, $0.07 better than the analyst estimate of $0.11. Revenue for the quarter came in at $419.3 million versus the consensus estimate of $434.6 million.
2017 Guidance
GAAP guidance includes the Cardpool gift card exchange and Grass Roots Meetings & Events businesses. Non-GAAP guidance excludes the Cardpool gift card exchange and Grass Roots Meetings & Events businesses which are assets held for sale. Compared to the GAAP guidance provided on July 19, 2017, the range provided in the table below is lower due to slower sales trends at Cardpool, the Cardpool goodwill impairment charge recorded in the third quarter of 2017, net revenue accounting treatment at Grass Roots (which lowers reported revenues but has no earnings impact) and the mix of incentives businesses. Compared to the Non-GAAP guidance provided on July 19, 2017, the revenue range provided in the tables below is lower due to the exclusion of Cardpool and net revenue accounting treatment at Grass Roots (which lowers reported revenues but has no earnings impact). While the Adjusted EBITDA and Adjusted Net Income ranges are not changed, the Company now believes it will finish its 2017 fiscal year slightly below the midpoint of Adjusted EBITDA range and near the high end of the range for Adjusted Net Income and Adjusted EPS.
Further details regarding the Company’s guidance, including a breakdown of guidance for the fourth fiscal quarter 2017, will be provided on the October 11, 2017 earnings call.
Annual GAAP Guidance
| $ in millions except per share amounts | 2017 Guidance | 2016 Actual | % Change | ||||||
| Operating Revenues | $2,169 to $2,262 | $ | 1,900 | 14% to 19% | |||||
| Net Income | $20 to $24 | $ | 5 | 304% to 383% | |||||
| Diluted EPS | $0.35 to $0.42 | $ | 0.08 | 332% to 417% | |||||
Annual Non-GAAP Guidance (excludes Cardpool and Grass Roots Meetings & Events)
| $ in millions except per share amounts | 2017 Guidance | 2016 Actual | % Change | |||||||||
| Adjusted Operating Revenues | $940 to $981 | $ | 800 | 18% to 23% | ||||||||
| Adjusted EBITDA | $225 to $250 | $ | 189 | 19% to 33% | ||||||||
| Adjusted Net Income | $91 to $100 | $ | 82 | 11% to 22% | ||||||||
| Adjusted Diluted EPS | $1.56 to $1.70 | $ | 1.43 | 9% to 19% | ||||||||
| Reduction in income taxes payable | $ | 58 | $ | 58 | — | |||||||
| Reduction in income taxes payable per share (diluted) | $ | 0.98 | $ | 1.02 | (3 | )% | ||||||
The Company's revised 2017 annual free cash flow projection is in the range of $125 million to $140 million.
The guidance above does not account for the impact of any future acquisitions, dispositions, partnerships or similar transactions, any changes to the Company’s existing capital structure or business model or any adverse outcome to any litigation or government investigation, and any such developments could have an impact on the Company’s guidance. Also see “Forward-Looking Statements” below.
(Street sees FY EPS of $1.68 on revenue of $1.11 billion and Q3 EPS of $0.11 on revenue of $216.3 million. Revenue estimates may not compare.)
For earnings history and earnings-related data on Blackhawk Network (HAWK) click here.