Back to top

Image: Bigstock

Euronet (EEFT) Q2 Earnings Surpass Estimates, Tumble Y/Y

Read MoreHide Full Article

Euronet Worldwide, Inc. (EEFT - Free Report) reported second-quarter 2020 earnings of 4 cents per share. The Zacks Consensus Estimate was of a loss of 33 cents. However, the bottom line fell 98% year over year due to weak segmental performances and business affected by the COVID-19 pandemic.

The company’s net loss of $2.18 per share in the second quarter came against net income of $1.25 of the prior-year quarter.

Total revenues were $527.8 million, down 24% from the year-ago quarter.
However, the top line beat the Zacks Consensus Estimate by 10.9%.

Operating loss of $101.3 million in the second quarter came against the operating income of $117.9 million in the prior-year period.

Total operating expenses of $629.1 million were up 9.6% year over year due to higher impairment of goodwill plus depreciation and amortization.

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise

Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote

Segmental Results

EFT Processing Segment’s total revenues plunged 66% (down 65% in constant currency) year over year due to lower transactions in Europe and the Asia Pacific. Adjusted EBITDA of ($14.8 million) dropped 116% (down 116% at cc) from the year-ago period. Operating loss of $56.6 million came against operating income of $76.5 million of the prior-year quarter.

The epay Segment’s total revenues inched up 2% year over year to $187.6 million (up 5% on constant currency basis). Adjusted EBITDA amounted to $19.7 million, increasing 2% from the year-earlier figure (up 6% on constant currency basis). Operating income of $18 million improved 2% year over year (up 7% on constant currency basis) on the back of digital media growth. Reported transactions were 585 million, up 59% year over year owing to better numbers across Europe and Brazil and robust contributions from India.

The Money Transfer Segment’s total revenues decreased 5% (down 4% at cc) year over year to $262.8 million. Adjusted EBITDA amounted to $36 million, reflecting a 17% decline (16% decrease at cc) from the prior-year quarter. Operating loss of $55.2 million came against the operating income of $35.3 million in the year-ago quarter. This segment’s total transactions of 25.8 million were down 11% year over year.

Corporate and Other Segment reported an expense of $7.5 million for the quarter, down 34.8% year over year.

Financial Update

Total assets at second-quarter end were $3.9 billion, down 14.9% from the level at 2019 end.

Cash and cash equivalents increased 10% to $864.9 million from the figure at 2019 end.

Debt obligations, net of current portion, were up 0.9% year over year to $1.1 billion from the level at 2019 end.

Zacks Rank and Performance of Other Players

Euronet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the other companies in the same space that already reported second-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) ), Visa Inc. (V - Free Report) and Synchrony Financial (SYF - Free Report) beat the respective Zacks Consensus Estimate.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>
 

Published in