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Green Dot (GDOT) Stock Rises 2.2% Despite Q1 Earnings Miss
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Green Dot Corporation (GDOT - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
The stock has gained 2.2% since the earnings release on May 9 on impressive 2024 revenue guidance.
Total operating revenues are anticipated between $1.58 billion and $1.62 billion. The mid-point of the guided range ($1.6 billion) is higher than the Zacks Consensus Estimate of $1.58 billion
GDOT’s earnings per share (excluding 50 cents from non-recurring items) of 59 cents missed the consensus estimate by 24.4% and dipped 40.4% from the year-ago quarter. Revenues of $447.4 million beat the Zacks Consensus Estimate by 7.6% and grew 7.5% on a year-over-year basis.
The company’s shares have gained 25.6% in the past six months, outperforming the 12% rally of the industry it belongs to.
B2B Services revenues grew 40.8% year over year to $241.2 million, surpassing our estimate of $219.1 million, largely driven by its BaaS partner.
Money Movement Services’ revenues increased 5% year over year to $103.15 million. This compares with our estimate of $57.3 million. Green Dot Network and tax business, referred to as TPG, had a strong start to the tax season, which primarily drove this segment’s revenues.
The Consumer Services segment’s revenues amounted to $100.61 million, down 28% from the year-ago quarter. This figure missed our estimate of $140.2 million. The macroeconomic trends continued to impact account acquisition, thus pressurizing active accounts and associated metrics, such as purchase volume, resulting in the decline of this segment’s revenues.
Corporate and Other revenues plummeted 17.88% from the year-ago quarter to $2.46 million. The metric beat our estimate of $600,000. The decline is due to the impacts of a rising interest rate environment.
Key Metrics
GDOT’s gross dollar volume rose 32.1% from the year-ago quarter to $30.76 billion. Purchase volume declined 14.1% year over year to $5.27 billion. The company ended the quarter with 3.5 million active accounts, down 9.4% on a year-over-year basis.
Operating Results
Adjusted EBITDA totaled $59.23 million, down 28.2% on a year-over-year basis. The adjusted EBITDA margin plummeted 680 basis points to 13.2%.
Balance Sheet & Cash Flow
Green Dot exited the first quarter with an unrestricted cash and cash equivalent balance of $1.12 billion compared with $682.3 million in fourth-quarter 2023. GDOT had no long-term debt. It generated $89.18 million of cash from operating activities. Its capital expenditure was $14.5 million.
Guidance
For 2024, adjusted earnings per share are anticipated to be $1.45-$1.59. The mid-point ($1.52) is slightly lower than the consensus estimate of $1.55. The adjusted EBITDA is expected to be $170-$180 million.
Green Dot currently carries a Zacks Rank #4 (Sell).
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.5 beat the Zacks Consensus Estimate by 5.8% and increased 16.9% from the year-ago quarter. Revenues of $3.9 billion missed the consensus mark by a slight margin but increased 7.8% year over year.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
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Green Dot (GDOT) Stock Rises 2.2% Despite Q1 Earnings Miss
Green Dot Corporation (GDOT - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
The stock has gained 2.2% since the earnings release on May 9 on impressive 2024 revenue guidance.
Total operating revenues are anticipated between $1.58 billion and $1.62 billion. The mid-point of the guided range ($1.6 billion) is higher than the Zacks Consensus Estimate of $1.58 billion
GDOT’s earnings per share (excluding 50 cents from non-recurring items) of 59 cents missed the consensus estimate by 24.4% and dipped 40.4% from the year-ago quarter. Revenues of $447.4 million beat the Zacks Consensus Estimate by 7.6% and grew 7.5% on a year-over-year basis.
The company’s shares have gained 25.6% in the past six months, outperforming the 12% rally of the industry it belongs to.
Green Dot Corporation Price and EPS Surprise
Green Dot Corporation price-eps-surprise | Green Dot Corporation Quote
Segmental Revenues
B2B Services revenues grew 40.8% year over year to $241.2 million, surpassing our estimate of $219.1 million, largely driven by its BaaS partner.
Money Movement Services’ revenues increased 5% year over year to $103.15 million. This compares with our estimate of $57.3 million. Green Dot Network and tax business, referred to as TPG, had a strong start to the tax season, which primarily drove this segment’s revenues.
The Consumer Services segment’s revenues amounted to $100.61 million, down 28% from the year-ago quarter. This figure missed our estimate of $140.2 million. The macroeconomic trends continued to impact account acquisition, thus pressurizing active accounts and associated metrics, such as purchase volume, resulting in the decline of this segment’s revenues.
Corporate and Other revenues plummeted 17.88% from the year-ago quarter to $2.46 million. The metric beat our estimate of $600,000. The decline is due to the impacts of a rising interest rate environment.
Key Metrics
GDOT’s gross dollar volume rose 32.1% from the year-ago quarter to $30.76 billion. Purchase volume declined 14.1% year over year to $5.27 billion. The company ended the quarter with 3.5 million active accounts, down 9.4% on a year-over-year basis.
Operating Results
Adjusted EBITDA totaled $59.23 million, down 28.2% on a year-over-year basis. The adjusted EBITDA margin plummeted 680 basis points to 13.2%.
Balance Sheet & Cash Flow
Green Dot exited the first quarter with an unrestricted cash and cash equivalent balance of $1.12 billion compared with $682.3 million in fourth-quarter 2023. GDOT had no long-term debt. It generated $89.18 million of cash from operating activities. Its capital expenditure was $14.5 million.
Guidance
For 2024, adjusted earnings per share are anticipated to be $1.45-$1.59. The mid-point ($1.52) is slightly lower than the consensus estimate of $1.55. The adjusted EBITDA is expected to be $170-$180 million.
Green Dot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Republic Services, Inc. (RSG - Free Report) reported mixed first-quarter 2024 results.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.5 beat the Zacks Consensus Estimate by 5.8% and increased 16.9% from the year-ago quarter. Revenues of $3.9 billion missed the consensus mark by a slight margin but increased 7.8% year over year.
Equifax Inc. (EFX - Free Report) reported mixed first-quarter 2024 results.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.