Payments And Data Company Deluxe's 'North Star': Guiding Towards An Extra $100M Free Cash Flow By 2026
Portfolio Pulse from Nabaparna Bhattacharya
Deluxe Corporation (NYSE:DLX) has reaffirmed its 2023 revenue and adjusted EPS guidance, aligning with consensus estimates. The company also provided its 2024 guidance and introduced the North Star initiative, aiming to increase run-rate free cash flow by $100 million by 2026. For FY24, Deluxe forecasts revenues slightly below consensus and adjusted EBITDA between $400 million and $420 million, with adjusted EPS in the range of $3.10-$3.40, compared to a consensus of $3.34, and anticipates free cash flow of $60 million to $80 million. DLX shares saw a 1.91% increase to close at $19.17 on Monday.
December 05, 2023 | 1:02 pm
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Deluxe Corporation reaffirmed its FY23 guidance, matching consensus estimates, and provided FY24 guidance with a strategic plan to increase free cash flow by $100 million by 2026. The stock closed up 1.91% following the announcement.
The reaffirmation of FY23 guidance and the introduction of the North Star initiative to boost free cash flow are positive signals for investors, indicating management's confidence in the company's financial health and strategic direction. The slight increase in stock price reflects a positive market reaction, suggesting a potential short-term uplift in investor sentiment. However, the FY24 revenue guidance being slightly below consensus may temper the impact.
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