Euronet Worldwide, Inc.

Company Description

Euronet Worldwide, Inc. provides electronic payment services domestically and internationally. The company was founded in 1994 and has a market cap of $1.17 billion.

Shares of EEFT have gained more 200% in the last 7 months after bottoming out below $8 in early March. The company's recent third-quarter results, reported on Oct 28, were better than expected.

Third-Quarter Results

Sales were down 5.7% from last year but earnings came in better than expected at 34 cents per share, 6 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 4 quarters by an average of 5 cents, or 19%.

Euronet noted that its results were helped by stronger profits in Europe and India related to its electronic financial transaction processing unit. But the company also added that currency exchanges hurt its results, effected by the weak Dollar compared to last year.

Estimates Advance

Estimates have advanced on word of the good quarter, with the current year adding 4 cents and climbing to $1.17 per share. The next-year estimate is pegged at $1.42, a bullish 21% growth projection.

Valuation

Based on the current-year estimate shares of EEFT are trading with a P/E multiple of 18X, in line with the overall market.

The Chart

Shares of EEFT have been trading mostly sideways for the last few months after posting big gains earlier in the year. Take a look below.