We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Euronet (EEFT) Unit Ties Up to Boost Cambodia's Money Transfers
Read MoreHide Full Article
Euronet Worldwide, Inc.’s (EEFT - Free Report) business segment Ria Money Transfer recently collaborated with the renowned retail bank of Cambodia - ACLEDA Bank Plc. The tie-up serves a dual purpose of expanding the reach of Ria’s network as well as bringing about improved cross-border money transfer services across Cambodia.
Around 300 cash pickup and payout locations of ACLEDA stretched throughout the country will now form a part of Ria’s network. This, in turn, will make Ria’s global money transfer services available at a total of 4,318 locations in Cambodia and undoubtedly, lead to a strong nationwide foothold for EEFT.
Additionally, utilization of Ria’s credible services will offer some lucrative benefits of cash payments, account deposits as well as cash collection in both KHR (Cambodian Riel) and USD (United States Dollars) to Cambodians and foreigners staying in the country. Also, people from any corner of the globe can transfer funds to a Cambodian bank account in real time with the help of Ria’s network, which boasts over 500,000 worldwide retail locations.
The latest tie-up reflects Euronet’s sincere efforts to occupy a significant share in Cambodia’s remittance market, which continues to witness a significant transfer of funds to and from the country. A minimum of 1.3 million Cambodians reside and work abroad, while two-thirds of them resort to sending money home. Remittances worth $1.25 billion were sent to Cambodia in 2022, which was 8% higher than the figure reported in 2021. This demonstrates the timeliness of EEFT’s recent move.
Continuous addition of locations within the money transfer network of Euronet is expected to generate more transactions and fetch higher revenues for its Money Transfer segment. The unit contributed the most to the top line of EEFT in 2022. The number of transactions processed on its money transfer network has witnessed a CAGR of around 8.3% over the 2018-2022 period.
Last year, the Money Transfer segment added over 32,000 network locations. Benefiting on the back of consistent growth in Euronet’s physical and digital distribution networks, the unit generated revenues of $1,444.5 million in 2022. The figure grew 3% year over year (up 9% on a constant currency basis).
The efficiency of the Money Transfer unit has also received a boost from the utilization of Euronet’s Ren Payments Platform, the sound technology of which makes it deployable across multiple physical locations. The platform is entrusted to perform payments processing as well as deliver issuing, acquiring and real-time payment services to a wide range of industries. In February 2023, EEFT inked a deal with LATAM digital wallet provider, SOLFIN, enabling Ren to extend card issuing services over the next decade.
Shares of Euronet have gained 11.5% year to date compared with the industry’s 9.5% growth. EEFT currently carries a Zacks Rank #2 (Buy).
BNY Mellon’s earnings beat estimates in three of the trailing four quarters and matched the mark once, the average surprise being 4.81%. The Zacks Consensus Estimate for BK’s 2023 earnings suggests an improvement of 5.2%, while the same for revenues suggests growth of 7.3% from the corresponding year-ago reported figures. The consensus mark for BK’s 2023 earnings has moved 1.9% north in the past 30 days.
The bottom line of Esquire Financial outpaced estimates in each of the last four quarters, the average surprise being 7.36%. The Zacks Consensus Estimate for ESQ’s 2023 earnings suggests an improvement of 33.1%, while the same for revenues implies 24.8% growth from the corresponding year-ago reported figures. The consensus mark for ESQ’s 2023 earnings has moved 12.4% north in the past 30 days.
Northeast Community Bancorp’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 12.42%. The Zacks Consensus Estimate for NECB’s 2023 earnings suggests an improvement of 52.5%, while the same for revenues suggests growth of 36.2% from the corresponding year-ago reported figures. The consensus mark for NECB’s 2023 earnings has moved 34.6% north in the past 30 days.
Shares of BNY Mellon and Northeast Community Bancorp have gained 5.4% and 3.2%, respectively, year to date. However, the Esquire Financial stock has lost 5.6% in the same time frame.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Euronet (EEFT) Unit Ties Up to Boost Cambodia's Money Transfers
Euronet Worldwide, Inc.’s (EEFT - Free Report) business segment Ria Money Transfer recently collaborated with the renowned retail bank of Cambodia - ACLEDA Bank Plc. The tie-up serves a dual purpose of expanding the reach of Ria’s network as well as bringing about improved cross-border money transfer services across Cambodia.
Around 300 cash pickup and payout locations of ACLEDA stretched throughout the country will now form a part of Ria’s network. This, in turn, will make Ria’s global money transfer services available at a total of 4,318 locations in Cambodia and undoubtedly, lead to a strong nationwide foothold for EEFT.
Additionally, utilization of Ria’s credible services will offer some lucrative benefits of cash payments, account deposits as well as cash collection in both KHR (Cambodian Riel) and USD (United States Dollars) to Cambodians and foreigners staying in the country. Also, people from any corner of the globe can transfer funds to a Cambodian bank account in real time with the help of Ria’s network, which boasts over 500,000 worldwide retail locations.
The latest tie-up reflects Euronet’s sincere efforts to occupy a significant share in Cambodia’s remittance market, which continues to witness a significant transfer of funds to and from the country. A minimum of 1.3 million Cambodians reside and work abroad, while two-thirds of them resort to sending money home. Remittances worth $1.25 billion were sent to Cambodia in 2022, which was 8% higher than the figure reported in 2021. This demonstrates the timeliness of EEFT’s recent move.
Continuous addition of locations within the money transfer network of Euronet is expected to generate more transactions and fetch higher revenues for its Money Transfer segment. The unit contributed the most to the top line of EEFT in 2022. The number of transactions processed on its money transfer network has witnessed a CAGR of around 8.3% over the 2018-2022 period.
Last year, the Money Transfer segment added over 32,000 network locations. Benefiting on the back of consistent growth in Euronet’s physical and digital distribution networks, the unit generated revenues of $1,444.5 million in 2022. The figure grew 3% year over year (up 9% on a constant currency basis).
The efficiency of the Money Transfer unit has also received a boost from the utilization of Euronet’s Ren Payments Platform, the sound technology of which makes it deployable across multiple physical locations. The platform is entrusted to perform payments processing as well as deliver issuing, acquiring and real-time payment services to a wide range of industries. In February 2023, EEFT inked a deal with LATAM digital wallet provider, SOLFIN, enabling Ren to extend card issuing services over the next decade.
Shares of Euronet have gained 11.5% year to date compared with the industry’s 9.5% growth. EEFT currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the Finance space are The Bank of New York Mellon Corporation (BK - Free Report) , Esquire Financial Holdings, Inc. (ESQ - Free Report) and Northeast Community Bancorp, Inc. (NECB - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BNY Mellon’s earnings beat estimates in three of the trailing four quarters and matched the mark once, the average surprise being 4.81%. The Zacks Consensus Estimate for BK’s 2023 earnings suggests an improvement of 5.2%, while the same for revenues suggests growth of 7.3% from the corresponding year-ago reported figures. The consensus mark for BK’s 2023 earnings has moved 1.9% north in the past 30 days.
The bottom line of Esquire Financial outpaced estimates in each of the last four quarters, the average surprise being 7.36%. The Zacks Consensus Estimate for ESQ’s 2023 earnings suggests an improvement of 33.1%, while the same for revenues implies 24.8% growth from the corresponding year-ago reported figures. The consensus mark for ESQ’s 2023 earnings has moved 12.4% north in the past 30 days.
Northeast Community Bancorp’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 12.42%. The Zacks Consensus Estimate for NECB’s 2023 earnings suggests an improvement of 52.5%, while the same for revenues suggests growth of 36.2% from the corresponding year-ago reported figures. The consensus mark for NECB’s 2023 earnings has moved 34.6% north in the past 30 days.
Shares of BNY Mellon and Northeast Community Bancorp have gained 5.4% and 3.2%, respectively, year to date. However, the Esquire Financial stock has lost 5.6% in the same time frame.