Euronet Worldwide, Inc. ( EEFT Quick Quote 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.
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.
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.
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.
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.
Euronet sports a Zacks Rank #1 (Strong Buy). You can see
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