Green Dot Corporation ( delivered mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. GDOT did not raise its revenue guidance despite strong demand for financial transaction services. This might have displeased investors as the stock has plunged 16.2% since the earnings release on Aug 4. GDOT Quick Quote GDOT - Free Report)
Quarterly earnings (excluding 47 cents from non-recurring items) of 74 cents per share beat the consensus estimate by 42.3% and increased 8.8%% on a year-over-year basis. Non-GAAP operating revenues of $355.1 million missed the consensus mark by 1% but decreased 3.9% year over year.
The Consumer Services segment’s revenues came in at $151 million, down 17% from the year-ago quarter’s level.
The B2B Services segment’s revenues of $143.5 million increased 27.4% year over year.
Money Movement Services segment’s revenues were down 18% year over year to $54 million.
Gross dollar volume decreased marginally year over year to $17.4 billion. Purchase volume fell 23.6% from the prior-year quarter’s level to $6.8 billion. GDOT ended the quarter with 4.61 million active accounts, down 23.5% year over year.
Adjusted EBITDA of $67.5 million rose 7.3% on a year-over-year basis. Adjusted EBITDA margin of 19% was up from the year-ago quarter’s level of 17.6%.
Green Dot exited the second quarter with unrestricted cash and cash equivalents balance of $776.3 million compared to $1.32 billion reported at the end of the prior quarter. GDOT had no long-term debt. GDOT generated $71.8 million cash from operating activities, while capex was $17.5 million.
Currently, Green Dot sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. 2022 Guidance
Green Dot expects full-year non-GAAP earnings per share (EPS) between $2.35 and $2.49 (prior view: $2.32 and $2.46). The midpoint of the guidance ($2.42) is below the current Zacks Consensus Estimate of $2.48.
Full-year non-GAAP total operating revenues are expected between $1.394 billion and $1.43 billion. The midpoint ($1.412) of the guided range is above the Zacks Consensus Estimate of $1.41 billion.
Adjusted EBITDA is expected in the band of $230-$240 million (prior view: $225-$235 million).
Recent Performances of Some Other Business Services Companies Equifax ( reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. EFX Quick Quote EFX - Free Report)
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings ( reported solid second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. IQV Quick Quote IQV - Free Report)
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (reported impressive second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. OMC Quick Quote OMC - Free Report)
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.