Deluxe Profit Falls

The check printer sees earnings fall 36%.
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Deluxe

(DLX) - Get Report

said its first-quarter earnings fell 36%.

The company earned $25 million, or 48 cents a share, in the quarter, compared with $39 million, or 78 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 52 cents a share in the most recent quarter.

First quarter revenue decreased 5.9% to $411 million as against analysts' expectation of $423 million.

The company expects to earn 52 cents a share to 56 cents a share in the second quarter and $2.70 a share to $2.80 a share in the full year while analysts' estimate 62 cents a share for the second quarter and $2.90 a share for the full year.

Operating profit fell 32.5% to $52 million while operating profit margin declined 490 basis points to 12.7%.

Sales from small business services segment increased 4.9% to $236 million. Revenue from financial services fell 19.3% to $117 million and direct checks segment sales dropped 13.4% to $58 million.

Deluxe dropped 32 cents Tuesday to $25.37.

This story was created through a joint venture between TheStreet.com and IRIS.