This global ATM operator beat third quarter estimates by $0.02 and is forecast for double-digit growth for the next five years.
Cardtronics (CATM)
from Upside
With a solid track record and opportunistic expansion strategy, Cardtronics (CATM) seems well positioned for growth. The company owns and operates more than 111,150 retail automated teller machines (ATMs) in the U.S. and overseas—more than double the number at the start of 2012.
A growing presence in U.S. and foreign markets should bolster results. In November, Cardtronics agreed to manage roughly 1,800 ATMs in the U.K. In October, Cardtronics acquired Welch ATM and its more than 26,000 ATMs, including roughly 5,100 at Walgreens locations.
Cardtronics sports a Quadrix® Overall score of 93, reflecting strong scores for Value (75), Quality (86), and Earnings Estimates (88). Based on an expanded footprint, better cost controls, and improved profit margins, the company should be able to meet or beat near-term profit estimates. Seven analysts provide earnings estimates for 2014, with the average at $2.33 per share, up 21%. Revenue should climb 19%.
For 2015, the consensus calls for per-share profit growth of 16% on sales growth of 13%. Cardtronics, trading at a reasonable 14 times projected 2015 profits, is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, December 1, 2014