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Green Dot (GDOT) Q2 Earnings Beat Estimates, Stock Up 4.5%

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Green Dot Corporation (GDOT - Free Report) reported impressive second-quarter 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate. The stock climbed 4.5% since the earnings release in response to the better-than-expected results and raised 2021 guidance.

The company currently expects non-GAAP EPS to be between $2.13 and $2.27, compared with the previous expectation of $2.06 to $2.15. The midpoint ($2.2) of the raised guided range is above the current Zacks Consensus Estimate of $2.13 per share.

Non-GAAP total operating revenues are currently anticipated between $1.33 billion and $1.35 billion, compared with the previous expectation of $1.27 to $ 1.29 billion. The midpoint ($1.34 billion) of the raised guided range is slightly below the current Zacks Consensus Estimate of $1.35 billion.

Quarterly adjusted earnings of 68 cents per share surpassed the consensus estimate by 47.8% and increased 58% on a year-over-year basis. Non-GAAP operating revenues of $357.9 million surpassed the consensus mark by 14.6% and increased 19% year over year.

Shares of the company have declined 16.1% year to date against 9% rise of the industry it belongs to.

Segmental Revenues

The Consumer Services segment’s revenues came in at $182.1 million, up 12% from the year-ago quarter’s level. The B2B Services segment’s revenues of $112.6 million increased 46.9% year over year. Money Movement Services segment’s revenues were up year over year to $66 million.

Key Metrics

Gross dollar volume climbed 15.2% year over year to $17.4 billion. Purchase volume rose 4.6% from the prior-year quarter’s level to $8.9 billion. The company ended the quarter with six million active accounts, down 3.5% year over year.

Operating Results

Adjusted EBITDA of $62.9 million improved 39% on a year-over-year basis. Adjusted EBITDA margin of 17.6% was up from the year-ago quarter’s level of 15.1%.

Balance Sheet

Green Dot exited the quarter with cash, cash equivalents balance of $1.9 billion compared with $2.7 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $38.8 million of cash from operating activities and capex was $13.4 million.

Currently, Green Dot carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s (INFO - Free Report) second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.

Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.

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IHS Markit Ltd. (INFO) - free report >>