Deluxe Corp. said Thursday its second-quarter profit rose 4 percent as its diversification into marketing services accelerated.
The company, long known for providing checks, payroll and other financial services to businesses, said its marketing services business experienced the fastest growth among its units, a 20 percent jump in revenue, and now accounts for nearly one-fourth of sales.
Executives gave a mixed outlook for the rest of the year. New guidance for third-quarter profit was below analysts' expectations, while its full-year target was in line. Deluxe shares fell 0.9 percent.
Shoreview-based Deluxe said it earned $50.1 million, or 99 cents a diluted share, in the April-to-June period. A year ago, it earned $48.2 million, or 94 cents a share, in the same period. Revenue was up 6.3 percent to $405.4 million.
The company's biggest unit, which provides services to small businesses, reported a 9 percent sales increase to $273.8 million and a 5.6 percent jump in operating profit to $48.8 million.
Evan Ramstad
