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UPDATE 1-NetSpend full-year forecast beats estimates, shares rise
February 13, 2013 / 10:31 PM / 5 years ago

UPDATE 1-NetSpend full-year forecast beats estimates, shares rise

* Q4 revenue up 17 pct to $89.7 million

* FY 2013 adj EPS view $0.76-$0.81 vs est $0.72

* FY 2013 revenue view of $414 mln-$424 mln vs est $411.3 mln

* Shares up about 10 pct after market

Feb 13 (Reuters) - Prepaid debit card provider NetSpend Holdings Inc reported a 5 percent rise in quarterly profit as more people used its cards and forecast full-year results above analysts’ estimates, sending its shares up 10 percent after the bell.

The Austin, Texas-based company said it expected full-year earnings within a range of 76 cents to 81 cents on revenue of between $414 million and $424 million.

Analysts on average had forecast 72 cents per share on revenue of $411.3 million, according to Thomson Reuters I/B/E/S.

The number of active cards with direct deposit was up 25 percent at 1.08 million as of Dec. 31, NetSpend said in a statement.

Net income rose to $10.1 million, or 13 cents per share, for the fourth quarter ended Dec. 31, from $9.6 million, or 11 cents per share, a year earlier.

Excluding items, the company earned 15 cents per share.

Netspend, which caters to customers with limited access to bank accounts or credit, said fourth-quarter revenue rose 17 percent to $89.7 million.

Analysts on average were expecting the company to earn 15 cents per share on revenue of $88.8 million, according to Thomson Reuters I/B/E/S.

NetSpend’s gross dollar volume - the volume of debit transactions and cash withdrawals made using its reloadable cards - rose to $3.3 billion in the quarter from $2.8 billion a year ago.

Shares of the company, which have risen about 35 percent in the last year, closed at $11.42 on Wednesday on the Nasdaq.

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