Green Dot Corporation (GDOT - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Better-than-expected results failed to impress investors, as there has not been any major price change since the earnings release on Nov 4.
Quarterly earnings (excluding 30 cents from non-recurring items) of 43 cents per share surpassed the consensus estimate by 19.4% and increased 72% on a year-over-year basis. Non-GAAP operating revenues of $328.9 million surpassed the consensus mark by 7.9% and increased 18% year over year.
Shares of the company have declined 19% in the past year compared with a 16.6% loss of the industry it belongs to.
Segmental Revenues
The Consumer Services segment’s revenues came in at $167.5 million, up 11.3% from the year-ago quarter’s level.
The B2B Services segment’s revenues of $118.2 million increased 53.3% year over year.
Money Movement Services segment’s revenues were up 19.3% year over year to $45.6 million.
Key Metrics
Gross dollar volume increased 13.1% year over year to $16.4 billion. Purchase volume dropped 2.6% from the prior-year quarter’s level to $7.4 billion. The company ended the quarter with 5.37 million active accounts, down 6.11% year over year.
Operating Results
Adjusted EBITDA of $46.2 million increased 37% on a year-over-year basis. Adjusted EBITDA margin of 14.1% was up from the year-ago quarter’s level of 12.1%.
Balance Sheet
Green Dot exited the third quarter with unrestricted cash, cash equivalents balance of $1.8 billion compared with $1.9 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $27.7 million of cash from operating activities and capex was $15.8 million.
Currently, Green Dot carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Raised Guidance
The company currently expects non-GAAP earnings per share (EPS) to be between $2.19 and $2.27 (previous outlook: $2.13 and $2.27). The midpoint ($2.23) of the raised guidance is above the current Zacks Consensus Estimate of $2.22 per share.
Non-GAAP total operating revenues are currently anticipated between $1.37 billion and $1.38 billion (previous outlook: $1.33 billion and $1.35 billion). The midpoint ($1.375 billion) of the raised guidance is slightly below the current Zacks Consensus Estimate of $1.37 billion.
Adjusted EBITDA is now expected in the band of $217-$223 million (previous outlook: $215-$225 million).
Performance of Some Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted EPS of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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 >>
Green Dot Corporation (GDOT - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Better-than-expected results failed to impress investors, as there has not been any major price change since the earnings release on Nov 4.
Quarterly earnings (excluding 30 cents from non-recurring items) of 43 cents per share surpassed the consensus estimate by 19.4% and increased 72% on a year-over-year basis. Non-GAAP operating revenues of $328.9 million surpassed the consensus mark by 7.9% and increased 18% year over year.
Shares of the company have declined 19% in the past year compared with a 16.6% loss of the industry it belongs to.
Segmental Revenues
The Consumer Services segment’s revenues came in at $167.5 million, up 11.3% from the year-ago quarter’s level.
The B2B Services segment’s revenues of $118.2 million increased 53.3% year over year.
Money Movement Services segment’s revenues were up 19.3% year over year to $45.6 million.
Key Metrics
Gross dollar volume increased 13.1% year over year to $16.4 billion. Purchase volume dropped 2.6% from the prior-year quarter’s level to $7.4 billion. The company ended the quarter with 5.37 million active accounts, down 6.11% year over year.
Operating Results
Adjusted EBITDA of $46.2 million increased 37% on a year-over-year basis. Adjusted EBITDA margin of 14.1% was up from the year-ago quarter’s level of 12.1%.
Balance Sheet
Green Dot exited the third quarter with unrestricted cash, cash equivalents balance of $1.8 billion compared with $1.9 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $27.7 million of cash from operating activities and capex was $15.8 million.
Currently, Green Dot carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Raised Guidance
The company currently expects non-GAAP earnings per share (EPS) to be between $2.19 and $2.27 (previous outlook: $2.13 and $2.27). The midpoint ($2.23) of the raised guidance is above the current Zacks Consensus Estimate of $2.22 per share.
Non-GAAP total operating revenues are currently anticipated between $1.37 billion and $1.38 billion (previous outlook: $1.33 billion and $1.35 billion). The midpoint ($1.375 billion) of the raised guidance is slightly below the current Zacks Consensus Estimate of $1.37 billion.
Adjusted EBITDA is now expected in the band of $217-$223 million (previous outlook: $215-$225 million).
Performance of Some Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted EPS of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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 >>
Get the latest research report on OMC - FREE
Get the latest research report on EFX - FREE
Get the latest research report on GDOT - FREE
Get the latest research report on IQV - FREE