Green Dot Corporation (GDOT - Free Report) delivered strong third-quarter 2022 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate.
The better-than-expected results and impressive EPS guidance appeared to have pleased investors as the stock has shot up 7.4% since the earnings release on Nov 11. GDOT has raised its 2022 non-GAAP EPS guidance. The company now expects EPS to be in the range of $2.42-$2.51 compared with the previous expectation of $2.35-$2.49. The midpoint ($2.47) is above the current Zacks Consensus Estimate of $2.44 per share.
Quarterly non-GAAP earnings of 44 cents per share beat the consensus estimate by 22.2% and increased 2.3% on a year-over-year basis. Non-GAAP operating revenues of $337.2 million beat the consensus mark by 3.3% but decreased slightly year over year.
GDOT shares have declined 46.5% year to date compared with the 13.6% decline of the industry it belongs to.
Segmental Revenues
The Consumer Services segment’s revenues came in at $135.8 million, down 18.9% from the year-ago quarter’s level. The B2B Services segment’s revenues of $158.2 million increased 33.9% year over year. Money Movement Services segment’s revenues were down 21.6% year over year to $14.7 million.
Key Metrics
Gross dollar volume increased 13.9%year over year to $18.7 billion. Purchase volume fell 12.4% from the prior-year quarter’s level to $6.4 billion. GDOT ended the quarter with 4.61 million active accounts, down 19.4% year over year.
Operating Results
Adjusted EBITDA of $45.5 million decreased 2% on a year-over-year basis. Adjusted EBITDA margin of 13.5% was down from the year-ago quarter’s level of 14.1%.
Balance Sheet
Green Dot exited the quarter with unrestricted cash and cash equivalents balance of $813.2 million compared with $776.3 million reported at the end of the prior quarter. GDOT had no long-term debt. GDOT generated $64.6 million in cash from operating activities in the quarter.
2022 Guidance
GDOT continues to expect full-year non-GAAP total operating revenues to be between $1.394 billion and $1.43 billion. The midpoint ($1.412 billion) of the guided range is below the Zacks Consensus Estimate of $1.42 billion.
The company narrowed its range for adjusted EBITDA to $232-$238 million from the previously guided range of $230-$240 million while keeping the midpoint reaffirmed.
Green Dot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Green Dot Corporation (GDOT - Free Report) delivered strong third-quarter 2022 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate.
The better-than-expected results and impressive EPS guidance appeared to have pleased investors as the stock has shot up 7.4% since the earnings release on Nov 11. GDOT has raised its 2022 non-GAAP EPS guidance. The company now expects EPS to be in the range of $2.42-$2.51 compared with the previous expectation of $2.35-$2.49. The midpoint ($2.47) is above the current Zacks Consensus Estimate of $2.44 per share.
Quarterly non-GAAP earnings of 44 cents per share beat the consensus estimate by 22.2% and increased 2.3% on a year-over-year basis. Non-GAAP operating revenues of $337.2 million beat the consensus mark by 3.3% but decreased slightly year over year.
GDOT shares have declined 46.5% year to date compared with the 13.6% decline of the industry it belongs to.
Segmental Revenues
The Consumer Services segment’s revenues came in at $135.8 million, down 18.9% from the year-ago quarter’s level. The B2B Services segment’s revenues of $158.2 million increased 33.9% year over year. Money Movement Services segment’s revenues were down 21.6% year over year to $14.7 million.
Key Metrics
Gross dollar volume increased 13.9%year over year to $18.7 billion. Purchase volume fell 12.4% from the prior-year quarter’s level to $6.4 billion. GDOT ended the quarter with 4.61 million active accounts, down 19.4% year over year.
Operating Results
Adjusted EBITDA of $45.5 million decreased 2% on a year-over-year basis. Adjusted EBITDA margin of 13.5% was down from the year-ago quarter’s level of 14.1%.
Balance Sheet
Green Dot exited the quarter with unrestricted cash and cash equivalents balance of $813.2 million compared with $776.3 million reported at the end of the prior quarter. GDOT had no long-term debt. GDOT generated $64.6 million in cash from operating activities in the quarter.
2022 Guidance
GDOT continues to expect full-year non-GAAP total operating revenues to be between $1.394 billion and $1.43 billion. The midpoint ($1.412 billion) of the guided range is below the Zacks Consensus Estimate of $1.42 billion.
The company narrowed its range for adjusted EBITDA to $232-$238 million from the previously guided range of $230-$240 million while keeping the midpoint reaffirmed.
Green Dot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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