We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Euronet Worldwide (EEFT) Up 55.1% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Euronet Worldwide (EEFT - Free Report) . Shares have added about 55.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Euronet Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Euronet reported third-quarter 2020 earnings of $1.12 per share, beating the Zacks Consensus Estimate by 115.4% on the back of epay and Money Transfer segments. However, the bottom line fell 61% year over year due to reduced revenues.
The company’s net income of 76 cents per share in the third quarter compared unfavorably with the net income of $2.46 in the prior-year quarter.
Total revenues of $664.4 million were down 16% from the year-ago quarter.
However, the top line beat the Zacks Consensus Estimate by 8.7%. Operating income of $66.1 million in the third quarter plunged 66% year over year.
Total operating expenses of $598.3 million were up 0.9% year over year due to higher direct operating costs.
Segmental Results
EFT Processing Segment’s total revenues slumped 54% (down 55% in constant currency) year over year due to lower high-value cross-border transactions in Europe and the Asia Pacific related to the coronavirus pandemic. Adjusted EBITDA of ($27.7) million dropped 84% (down 84% at cc) from the year-ago period. Operating income of $6.2 million tanked 96% year over year.
The epay Segment’s total revenues inched up 4% year over year to $198.9 million (up 3% on constant currency basis) on the back of digital media and mobile growth. Adjusted EBITDA amounted to $24.3 million, increasing 12% from the year-earlier figure (up 11% on constant currency basis). Operating income of $22.2 million improved 10% year over year (up 9% on constant currency basis). Reported transactions were 661 million, up 66% year over year owing to better numbers across Europe and Brazil as well as robust contributions from India.
The Money Transfer Segment’s total revenues increased 15% (up 13% at cc) year over year to $323.1 million. Adjusted EBITDA amounted to $57.8 million, reflecting a 32% increase (30% rise at cc) from the prior-year quarter. Operating income of $47.6 million rose 34% year over year (31% at cc). This segment’s total transactions of 30.9 million were up 5% year over year.
Corporate and Other Segment reported an expense of $9.9 million for the quarter, down 21.4% year over year.
Financial Update
Total assets at the third-quarter end were $4 billion, down 12.1% from the level at 2019 end.
Cash and cash equivalents increased 28.3% to $1 billion from the figure at 2019 end.
Debt obligations, net of current portion, were up 3.9% year over year to $1.1 billion from the level at 2019 end.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 20.13% due to these changes.
VGM Scores
Currently, Euronet Worldwide has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Euronet Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Euronet Worldwide (EEFT) Up 55.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Euronet Worldwide (EEFT - Free Report) . Shares have added about 55.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Euronet Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Euronet Q3 Earnings Surpass Estimates, Decline Y/Y
Euronet reported third-quarter 2020 earnings of $1.12 per share, beating the Zacks Consensus Estimate by 115.4% on the back of epay and Money Transfer segments. However, the bottom line fell 61% year over year due to reduced revenues.
The company’s net income of 76 cents per share in the third quarter compared unfavorably with the net income of $2.46 in the prior-year quarter.
Total revenues of $664.4 million were down 16% from the year-ago quarter.
However, the top line beat the Zacks Consensus Estimate by 8.7%.
Operating income of $66.1 million in the third quarter plunged 66% year over year.
Total operating expenses of $598.3 million were up 0.9% year over year due to higher direct operating costs.
Segmental Results
EFT Processing Segment’s total revenues slumped 54% (down 55% in constant currency) year over year due to lower high-value cross-border transactions in Europe and the Asia Pacific related to the coronavirus pandemic. Adjusted EBITDA of ($27.7) million dropped 84% (down 84% at cc) from the year-ago period. Operating income of $6.2 million tanked 96% year over year.
The epay Segment’s total revenues inched up 4% year over year to $198.9 million (up 3% on constant currency basis) on the back of digital media and mobile growth. Adjusted EBITDA amounted to $24.3 million, increasing 12% from the year-earlier figure (up 11% on constant currency basis). Operating income of $22.2 million improved 10% year over year (up 9% on constant currency basis). Reported transactions were 661 million, up 66% year over year owing to better numbers across Europe and Brazil as well as robust contributions from India.
The Money Transfer Segment’s total revenues increased 15% (up 13% at cc) year over year to $323.1 million. Adjusted EBITDA amounted to $57.8 million, reflecting a 32% increase (30% rise at cc) from the prior-year quarter. Operating income of $47.6 million rose 34% year over year (31% at cc). This segment’s total transactions of 30.9 million were up 5% year over year.
Corporate and Other Segment reported an expense of $9.9 million for the quarter, down 21.4% year over year.
Financial Update
Total assets at the third-quarter end were $4 billion, down 12.1% from the level at 2019 end.
Cash and cash equivalents increased 28.3% to $1 billion from the figure at 2019 end.
Debt obligations, net of current portion, were up 3.9% year over year to $1.1 billion from the level at 2019 end.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 20.13% due to these changes.
VGM Scores
Currently, Euronet Worldwide has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Euronet Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.