CPI Card Group Tumbles to Record Low

CPI Card Group is down 34% but off a record low hit earlier in the session after the company said late Wednesday Q3 sales fell 24.76% to $81.2 million from the year-ago period and missed the CapIQ mean for $85.60 million.

Adjusted EPS fell to $0.11 from $0.30 last year and missed expectations for $0.14.

It said the miss was due to continued softness in demand for EMV® chip cards and unfavorable foreign currency exchange rates.

Based on the continuing softness in EMV card shipments in Q4 at order rates below what was expected in its previous guidance, combined with a delayed operational start-up of its Print on Demand offering for the Prepaid Debit segment and unfavorable foreign currency exchange rates, it sees Q4 sales between $300 million and $305 million and adjusted EPS between $0.24 to $0.26. Estimates were for sales of $337.5 million and EPS of $0.49.

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