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Green Dot (GDOT) Stock Declines 7.6% due to Q4 Earnings Miss

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Green Dot Corporation (GDOT - Free Report) delivered mixed fourth-quarter 2021 results, with earnings missing the Zacks Consensus Estimate and revenues beating missing the same.

Green Dot stock fell 7.6% since the date of the earnings release on Feb 24, in response to weak 2022 earnings guidance. Green Dot expects its full-year non-GAAP earnings per share (EPS) to be between $2.22 and $2.35. The midpoint of the guidance ($2.285) is below the current Zacks Consensus Estimate of $2.61.

Quarterly earnings (excluding 46 cents from non-recurring items) of 27 cents per share missed the consensus estimate by 10% and decreased 12.9%% on a year-over-year basis. Non-GAAP operating revenues of $321.2 million surpassed the consensus mark by 4.9% and increased 13% year over year.

Segmental Revenues

The Consumer Services segment’s revenues came in at $160.8 million, up 4.2% from the year-ago quarter’s level.

Green Dot Corporation Price, Consensus and EPS Surprise

 

Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote

 

The B2B Services segment’s revenues of $121.8 million increased 58% year over year.

Money Movement Services segment’s revenues were down 17.4% year over year to $37.8 million.

Key Metrics

Gross dollar volume increased 14% year over year to $16.4 billion. Purchase volume rose 3% from the prior-year quarter’s level to $7.1 billion. The company ended the quarter with 5.07 million active accounts, down 7% year over year.

Operating Results

Adjusted EBITDA of $34.4 million dropped 1.2% on a year-over-year basis. Adjusted EBITDA margin of 10.7% was down from the year-ago quarter’s level of 12.7%.

Balance Sheet

Green Dot exited the fourth quarter with unrestricted cash, cash equivalents balance of $1.32 billion compared with $1.8 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $15.3 million of cash from operating activities and capex was $17.8 million.

Currently, Green Dot carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2022 Guidance

Non-GAAP total operating revenues are currently anticipated between $1.394 billion and $1.430 billion. The midpoint ($1.412 billion) of the guidance is slightly below the current Zacks Consensus Estimate of $1.42 billion.

Adjusted EBITDA is expected in the band of $225-$235 million.

Sectorial Snapshot

Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.  

Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.

Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
 

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