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Strength Seen in Euronet Worldwide (EEFT): Can Its 7.8% Jump Turn into More Strength?

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Euronet Worldwide (EEFT - Free Report) shares rallied 7.8% in the last trading session to close at $164.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% gain over the past four weeks.

The company has been constantly gaining from strong contribution by its segments. Euronet’s fourth-quarter adjusted earnings of $1.11 per share outpaced the Zacks Consensus Estimate by 54.2% on the back of better revenues. Other factors like the rise in digital transactions also contributed to overall growth. The growing popularity of contactless payments also creates a perfect ground for Euronet to bank on its array of innovative payment solutions. 
Last month, Euronet entered into agreements to add eight more banks for ATM network participation services in Spain. This move reinforces the company’s efforts to ramp up ATM consolidation across its countries of operations. The initiative also bolsters the company’s presence in Europe.
 

The company has been constantly gaining from strong contribution by its segments. Euronet’s fourth-quarter adjusted earnings of $1.11 per share outpaced the Zacks Consensus Estimate by 54.2% on the back of better revenues.

Other factors like the rise in digital transactions also contributed to overall growth. The growing popularity of contactless payments also creates a perfect ground for Euronet to bank on its array of innovative payment solutions.

Last month, Euronet entered into agreements to add eight more banks for ATM network participation services in Spain. This move reinforces the company’s efforts to ramp up ATM consolidation across its countries of operations. The initiative also bolsters the company’s presence in Europe.

The company has been constantly gaining from strong contribution by its segments. Euronet’s fourth-quarter adjusted earnings of $1.11 per share outpaced the Zacks Consensus Estimate by 54.2% on the back of better revenues. Other factors like the rise in digital transactions also contributed to overall growth. The growing popularity of contactless payments also creates a perfect ground for Euronet to bank on its array of innovative payment solutions. 
Last month, Euronet entered into agreements to add eight more banks for ATM network participation services in Spain. This move reinforces the company’s efforts to ramp up ATM consolidation across its countries of operations. The initiative also bolsters the company’s presence in Europe.
 

Price and Consensus

Price Consensus Chart for Euronet Worldwide

This electronic payments and transactions processor is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -30.9%. Revenues are expected to be $618.19 million, up 5.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Euronet Worldwide, the consensus EPS estimate for the quarter has been revised 44% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on EEFT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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