Green Dot Corporation (GDOT - Free Report) reported strong fourth-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate. In spite of better-than-expected results, shares of the company declined 2.2% since the earnings release.
Quarterly adjusted earnings (excluding 76 cents from non-recurring items) of 31 cents beat the consensus estimate by 93.8% and surged more than 100% on a year-over-year basis. Non-GAAP operating revenues of $274.5 million surpassed the consensus mark by 7.6% and increased 10.1% year over year.
Shares of the company have surged 50.9% in the past year compared with 12.2% rise of the industry it belongs to.
Segmental Revenues
The Account Services segment’s non-GAAP operating revenues came in at $233.7 million, up 23.2% from the year-ago quarter’s levels. The Processing and Settlement Services segment’s non-GAAP operating revenues of $43.1 million fell 22.3% year over year
Key Metrics
Gross dollar volume climbed 35.4% year over year to $14.3 billion. Gross dollar volume from direct deposit sources increased 23% year over year to $8.8 billion. Purchase volume rose 9% from the prior-year quarter’s levels to $6.9 billion. The company ended the fourth quarter with 5.5 million active accounts (up 8.1%) and 11.3 million cash transfers (down 6.5% year over year). The number of tax refunds processed was 0.11 million, up 57.1% year over year.
Operating Results
Adjusted EBITDA of $34.8 million increased 59% on a year-over-year basis. Adjusted EBITDA margin of 12.7% was up from the year-ago quarter’s level of 9.2%.
Balance Sheet
Green Dot exited the quarter with cash, cash equivalents and restricted cash balance of $1.5 billion compared with the $2.1 billion witnessed at the end of the prior quarter. The company had no long-term debt.
The company generated $10.3 million of cash from operating activities and capex was $15.1 million.
2021 Guidance
The company expects 2021 non-GAAP total operating revenues in the range of $1.23-$1.25 billion, which suggests 3% year-over-year increase at the mid-point.
Non-GAAP EPS is expected to be between $2.06 and $2.15, marking no changes year over year. The midpoint ($2.10) of which is lower than the consensus estimate of $2.19.
Adjusted EBITDA is anticipated between $210 million and $217 million, which calls for 4% year-over-year increase at the mid-point.
Currently, Green Dot carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago quarter’s figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and rose 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter’s on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and moved up 0.7% year over year.
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Green Dot Corporation (GDOT - Free Report) reported strong fourth-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate. In spite of better-than-expected results, shares of the company declined 2.2% since the earnings release.
Quarterly adjusted earnings (excluding 76 cents from non-recurring items) of 31 cents beat the consensus estimate by 93.8% and surged more than 100% on a year-over-year basis. Non-GAAP operating revenues of $274.5 million surpassed the consensus mark by 7.6% and increased 10.1% year over year.
Shares of the company have surged 50.9% in the past year compared with 12.2% rise of the industry it belongs to.
Segmental Revenues
The Account Services segment’s non-GAAP operating revenues came in at $233.7 million, up 23.2% from the year-ago quarter’s levels. The Processing and Settlement Services segment’s non-GAAP operating revenues of $43.1 million fell 22.3% year over year
Key Metrics
Gross dollar volume climbed 35.4% year over year to $14.3 billion. Gross dollar volume from direct deposit sources increased 23% year over year to $8.8 billion. Purchase volume rose 9% from the prior-year quarter’s levels to $6.9 billion. The company ended the fourth quarter with 5.5 million active accounts (up 8.1%) and 11.3 million cash transfers (down 6.5% year over year). The number of tax refunds processed was 0.11 million, up 57.1% year over year.
Operating Results
Adjusted EBITDA of $34.8 million increased 59% on a year-over-year basis. Adjusted EBITDA margin of 12.7% was up from the year-ago quarter’s level of 9.2%.
Balance Sheet
Green Dot exited the quarter with cash, cash equivalents and restricted cash balance of $1.5 billion compared with the $2.1 billion witnessed at the end of the prior quarter. The company had no long-term debt.
The company generated $10.3 million of cash from operating activities and capex was $15.1 million.
2021 Guidance
The company expects 2021 non-GAAP total operating revenues in the range of $1.23-$1.25 billion, which suggests 3% year-over-year increase at the mid-point.
Non-GAAP EPS is expected to be between $2.06 and $2.15, marking no changes year over year. The midpoint ($2.10) of which is lower than the consensus estimate of $2.19.
Adjusted EBITDA is anticipated between $210 million and $217 million, which calls for 4% year-over-year increase at the mid-point.
Currently, Green Dot carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago quarter’s figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and rose 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter’s on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and moved up 0.7% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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