Payments processor Heartland Payments System Inc. on July 28 said it expects its 2011 earnings to be higher than it previously forecasted after reporting a jump in second-quarter profit and sales.
The Princeton, N.J.-based company, which processes transactions for retailers, said fully diluted earnings per share would be in the range of $1 to $1.04 after eliminating a stock-compensation expense. Heartland previously forecasted full-year diluted earnings of 95 cents to 99 cents per share, minus the stock compensation expense.
For the quarter ended June 30, Heartland’s net income rose 102% from a year earlier to $12.3 million from $6.1 million a year earlier. The company’s net revenue, which excludes interchange, dues and other fees it passes along to banks and card networks, was up 6.1% to $122.2 million because of higher transaction processing volume. Total revenues were $526 million, up 10.4% from $475.9 million.
Processing volume for small and mid-size businesses was $17.5 billion, up 7.2%. Its network services division, which processes transactions for large merchants, saw transaction volume rise 6% to 847 million.
Robert Carr, Heartland’s chairman and chief executive, attributed the better results to “steady growth” in both its card and noncard businesses, such as campus ID card programs and services it offers for K-12 school lunch programs.
“Our key same store sales and new margin installed figures were up in the quarter, reflecting modest economic recovery at our merchants,” Carr said in a press release.
