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Euronet (EEFT) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Euronet Worldwide, Inc. (EEFT - Free Report) reported fourth-quarter 2020 adjusted earnings of $1.11 per share, which outpaced the Zacks Consensus Estimate by 54.2%. Moreover, the bottom line plunged 32% year over year.
The company’s results benefited from higher revenues and robust performances at its epay and Money Transfer segments, partly offset by elevated costs.
The company’s net income of $1.31 per share in the fourth quarter declined 31.4% from the prior-year quarter.
Nevertheless, total revenues of $706.6 million grew 2% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate by 8.3%.
Operating income of $50.2 million in the fourth quarter declined 53% year over year.
Total operating expenses of $656.4 million increased 11.9% year over year due to higher direct operating costs, salaries and benefits, depreciation and amortization, and selling, general and administrative expenses.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
EFT Processing Segment’s total revenues slumped 48% (down 50% on a constant currency) year over year due to reduced high-value cross-border transactions across Europe and the Asia Pacific. This has resulted from COVID-19 pandemic-induced border closures and shelter-in-place orders imposed by the governments. Adjusted EBITDA of $1 million plunged 99% (down 98% on a constant currency basis) from the year-ago period. Operating loss of $21.2 million compared unfavorably with the prior-year quarter’s operating income of $52.5 million.
The epay Segment’s total revenues improved 27% year over year to $276.1 million (up 22% on a constant currency basis) on the back of digital media and mobile growth. Adjusted EBITDA amounted to $42.2 million, which climbed 20% from the year-earlier figure (up 14% on a constant currency basis). Operating income of $39.9 million improved 19% year over year (up 13% on a constant currency basis). Reported transactions were 703 million, which surged 61% year over year attributable to customer growth across South America and Asia.
The Money Transfer Segment’s total revenues advanced 18% (up 14% on a constant currency basis) year over year to $331.6 million. Adjusted EBITDA amounted to $54.6 million, which reflected an increase of 32% (25% rise on a constant currency basis) from the prior-year quarter. Operating income of $45 million grew 36% year over year (up 29% on constant currency basis). This segment’s total transactions of 32.4 million were up 9% year over year.
Corporate and Other Segment reported an expense of $13.5 million for the quarter, up 13.4% year over year.
Financial Update
Total assets at the fourth-quarter end were $4.9 billion, up 5.8% from the level at 2019 end.
Cash and cash equivalents surged 80.7% to $1.4 billion from the figure at 2019 end.
Debt obligations, net of current portion, increased 31.8% year over year to $1.4 billion from the level at 2019 end.
Full-Year Update
For 2020, adjusted earnings per share of $2.82 surpassed the Zacks Consensus Estimate of $2.43. The bottom line plunged 59.8% year over year.
The company’s total revenues fell 10% from the 2019 figure to $2.5 billion in 2020 and beat the Zacks Consensus Estimate of $2.43 billion.
Of the finance sector players that reported fourth-quarter results so far, the bottom line of American Express Company (AXP - Free Report) , Synchrony Financial (SYF - Free Report) and Discover Financial Services (DFS - Free Report) beat the Zacks Consensus Estimate.
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Euronet (EEFT) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Euronet Worldwide, Inc. (EEFT - Free Report) reported fourth-quarter 2020 adjusted earnings of $1.11 per share, which outpaced the Zacks Consensus Estimate by 54.2%. Moreover, the bottom line plunged 32% year over year.
The company’s results benefited from higher revenues and robust performances at its epay and Money Transfer segments, partly offset by elevated costs.
The company’s net income of $1.31 per share in the fourth quarter declined 31.4% from the prior-year quarter.
Nevertheless, total revenues of $706.6 million grew 2% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate by 8.3%.
Operating income of $50.2 million in the fourth quarter declined 53% year over year.
Total operating expenses of $656.4 million increased 11.9% year over year due to higher direct operating costs, salaries and benefits, depreciation and amortization, and selling, general and administrative expenses.
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 slumped 48% (down 50% on a constant currency) year over year due to reduced high-value cross-border transactions across Europe and the Asia Pacific. This has resulted from COVID-19 pandemic-induced border closures and shelter-in-place orders imposed by the governments. Adjusted EBITDA of $1 million plunged 99% (down 98% on a constant currency basis) from the year-ago period. Operating loss of $21.2 million compared unfavorably with the prior-year quarter’s operating income of $52.5 million.
The epay Segment’s total revenues improved 27% year over year to $276.1 million (up 22% on a constant currency basis) on the back of digital media and mobile growth. Adjusted EBITDA amounted to $42.2 million, which climbed 20% from the year-earlier figure (up 14% on a constant currency basis). Operating income of $39.9 million improved 19% year over year (up 13% on a constant currency basis). Reported transactions were 703 million, which surged 61% year over year attributable to customer growth across South America and Asia.
The Money Transfer Segment’s total revenues advanced 18% (up 14% on a constant currency basis) year over year to $331.6 million. Adjusted EBITDA amounted to $54.6 million, which reflected an increase of 32% (25% rise on a constant currency basis) from the prior-year quarter. Operating income of $45 million grew 36% year over year (up 29% on constant currency basis). This segment’s total transactions of 32.4 million were up 9% year over year.
Corporate and Other Segment reported an expense of $13.5 million for the quarter, up 13.4% year over year.
Financial Update
Total assets at the fourth-quarter end were $4.9 billion, up 5.8% from the level at 2019 end.
Cash and cash equivalents surged 80.7% to $1.4 billion from the figure at 2019 end.
Debt obligations, net of current portion, increased 31.8% year over year to $1.4 billion from the level at 2019 end.
Full-Year Update
For 2020, adjusted earnings per share of $2.82 surpassed the Zacks Consensus Estimate of $2.43. The bottom line plunged 59.8% year over year.
The company’s total revenues fell 10% from the 2019 figure to $2.5 billion in 2020 and beat the Zacks Consensus Estimate of $2.43 billion.
Zacks Rank
Euronet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Finance Sector Releases
Of the finance sector players that reported fourth-quarter results so far, the bottom line of American Express Company (AXP - Free Report) , Synchrony Financial (SYF - Free Report) and Discover Financial Services (DFS - Free Report) beat the Zacks Consensus Estimate.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
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