Earnings Preview: CyberSource

CyberSource (CYBS) is expected to report Q3 earnings after market close Thursday, October 23, with a conference call scheduled for 4:30 pm ET.

Guidance

The consensus estimate is 15c for EPS and $56.22M for revenue, according to First Call. The company, on its last earnings call, said it sees Q3 EPS of 14c and revenues of $55.8M to $56M. Its guidance for FY08 was raised for EPS of 62c to 64c on revenues of $220M to $225M.

Analyst Views

For Q3, Wedbush expects EPS of 16c and revenue of $56.3M. The firm's checks indicate continued gross adds momentum. However, short-term pressure on shares may increase on "pre-holiday jitters". CyberSource remains Wedbush's favorite growth company in its coverage universe, as the firm believes it will continue to grow revenues and earnings even in a tougher economic environment. Wedbush rates CyberSource a Buy.

During the quarter, CyberSource was mentioned positively on Aug. 25 in Investor's Business Daily, saying the electronic payment processor is benefiting from significant growth in online buying by Americans and overseas consumers. Also, on Sept. 17, JMP Securities said that after meeting with management, the firm believes CyberSource is performing well, largely due to the strength of e-commerce. The firm reiterated its Outperform rating. Next Event: CyberSource will be presenting at Canaccord Adams 3rd Annual Holiday Clicks Conference on Dec. 4