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Euronet's (EEFT) Earnings and Revenues Top Estimates in Q3
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Euronet Worldwide, Inc. (EEFT - Free Report) delivered third-quarter 2018 earnings of $2.16 per share, beating the Zacks Consensus Estimate by 2.8%. Moreover, the bottom line surged 34.2% year over year.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
This solid growth was driven by performances across all its three segments, namely, EFT, Money Transfer and epay segments.
The company’s reported net income increased 5% to $1.89 earnings per share in the quarter under review.
Its total revenues were $715 million, up 12.1% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 0.8%.
Euronet’s total transactions were 1.02 billion, increased 10% year over year, primarily driven by growth in Europe and India through both ATMs and point-of-sale terminals.
Adjusted operating income increased nearly 29% to $150.9 million.
Segment Results
EFT Processing Segment’s total revenues grew 16% (18% on constant currency basis) year over year to $261.7 million on the back of increased transactions and higher number of ATMs. Adjusted EBITDA amounted to $127.1 million, a rise of 25% (26% at constant currency) from the year-ago period. Operating income for the segment was $110.4 million, up 27% year over year (up 28% on constant currency basis).
The epay Segment’s total revenues inched up 1% year over year to $185.4 million (up 3% on constant currency basis). Adjusted EBITDA amounted to $18.3 million, a 1% increase or a 2% increase at constant currency from the year-earlier quarter’s figure. Operating income stood at $16.4 million, up 4% year over year (6% increase on constant currency basis). This segment reported transactions of 284 million, down 3% year over year.
The Money Transfer Segment’s total revenues increased 18% (18% at constant currency) year over year to $268.4 million, backed by 16% increase in transactions. Adjusted EBITDA amounted to $42.2 million, a 33% improvement (34% increase on constant currency basis) from the prior-year quarter. Operating income for this segment totaled $34.3 million, up 41% year over year (42% increase at constant currency). This segment reported total transactions of 27.8 million, up 16% year over year.
Corporate and other Segment reported an expense of $10.2 million for the quarter under review.
4Q18 Guidance
Euronet expects adjusted earnings per share to be nearly $1.27 for the fourth quarter 2018.
Financial Update
Total assets at third-quarter end were $3.4 billion, up 10.2% from the level at year-end 2017.
Cash and cash equivalents improved nearly 38% to $1.1 billion from the figure at year-end 2017.
The company’s total indebtedness decreased 13.6% to $889 million from Jun 30, 2018 level.
Among other players from the finance sector having reported third-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s earnings (RLI - Free Report) lagged the same.
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Euronet's (EEFT) Earnings and Revenues Top Estimates in Q3
Euronet Worldwide, Inc. (EEFT - Free Report) delivered third-quarter 2018 earnings of $2.16 per share, beating the Zacks Consensus Estimate by 2.8%. Moreover, the bottom line surged 34.2% year over year.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise | Euronet Worldwide, Inc. Quote
This solid growth was driven by performances across all its three segments, namely, EFT, Money Transfer and epay segments.
The company’s reported net income increased 5% to $1.89 earnings per share in the quarter under review.
Its total revenues were $715 million, up 12.1% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 0.8%.
Euronet’s total transactions were 1.02 billion, increased 10% year over year, primarily driven by growth in Europe and India through both ATMs and point-of-sale terminals.
Adjusted operating income increased nearly 29% to $150.9 million.
Segment Results
EFT Processing Segment’s total revenues grew 16% (18% on constant currency basis) year over year to $261.7 million on the back of increased transactions and higher number of ATMs. Adjusted EBITDA amounted to $127.1 million, a rise of 25% (26% at constant currency) from the year-ago period. Operating income for the segment was $110.4 million, up 27% year over year (up 28% on constant currency basis).
The epay Segment’s total revenues inched up 1% year over year to $185.4 million (up 3% on constant currency basis). Adjusted EBITDA amounted to $18.3 million, a 1% increase or a 2% increase at constant currency from the year-earlier quarter’s figure. Operating income stood at $16.4 million, up 4% year over year (6% increase on constant currency basis). This segment reported transactions of 284 million, down 3% year over year.
The Money Transfer Segment’s total revenues increased 18% (18% at constant currency) year over year to $268.4 million, backed by 16% increase in transactions. Adjusted EBITDA amounted to $42.2 million, a 33% improvement (34% increase on constant currency basis) from the prior-year quarter. Operating income for this segment totaled $34.3 million, up 41% year over year (42% increase at constant currency). This segment reported total transactions of 27.8 million, up 16% year over year.
Corporate and other Segment reported an expense of $10.2 million for the quarter under review.
4Q18 Guidance
Euronet expects adjusted earnings per share to be nearly $1.27 for the fourth quarter 2018.
Financial Update
Total assets at third-quarter end were $3.4 billion, up 10.2% from the level at year-end 2017.
Cash and cash equivalents improved nearly 38% to $1.1 billion from the figure at year-end 2017.
The company’s total indebtedness decreased 13.6% to $889 million from Jun 30, 2018 level.
Zacks Rank
Euronet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases From Finance Sector
Among other players from the finance sector having reported third-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s earnings (RLI - Free Report) lagged the same.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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