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Green Dot (GDOT) Stock Appreciates 3.8% on Q1 Earnings Beat
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Green Dot Corporation (GDOT - Free Report) reported strong first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. The better-than-expected results appeared to have pleased investors as the stock has gained 3.8% since the earnings release on May 4.
Quarterly non-GAAP earnings (excluding 30 cents from non-recurring items) of 99 cents per share beat the consensus estimate by 30.3% but decreased 6.6% on a year-over-year basis. Non-GAAP operating revenues of $412.4 million beat the consensus mark by 7% and increased 2.9% year over year.
Segmental Revenues
The Consumer Services segment’s revenues totaled $139.8 million, down 12% from the year-ago quarter’s level. B2B Services generated revenues of $171.3 million which increased 27.9% year over year. Money Movement Services’ revenues improved marginally year over year to $98.24 million.
Key Metrics
Gross dollar volume increased 33.9% year over year to $23.3 billion. Purchase volume fell 14.6% from the prior-year quarter’s level to $6.15 billion. GDOT ended the quarter with 3.84 million active accounts, down 22.1% year over year.
Green Dot Corporation Price, Consensus and EPS Surprise
Adjusted EBITDA was $82.5 million, down 9% on a year-over-year basis. Adjusted EBITDA margin of 20% was down from the year-ago quarter’s level of 22.9%.
Balance Sheet
Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $722 million compared with $813.9 million reported at the end of the prior quarter. GDOT had no long-term debt. It generated $100.5 million in cash from operating activities in the quarter.
Reposts 2023 Guidance
GDOT expects non-GAAP EPS in the range of $1.77-$1.93. The midpoint of the guided range ($1.85) is above the current Zacks Consensus Estimate of $1.82.
Non-GAAP total operating revenues are anticipated to be between $1.376 billion and $1.462 billion. The midpoint of the guided range ($1.419 billion) is above the Zacks Consensus Estimate of $1.41 billion.
Adjusted EBITDA is projected in the range of $180-$190 million.
Green Dot currently carries a Zacks Rank #4 (Sell).
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results. EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure.
Total revenues of $1.3 billion surpassed the consensus estimate by 1.5%. The top line decreased 4.5% year over year.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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Green Dot (GDOT) Stock Appreciates 3.8% on Q1 Earnings Beat
Green Dot Corporation (GDOT - Free Report) reported strong first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. The better-than-expected results appeared to have pleased investors as the stock has gained 3.8% since the earnings release on May 4.
Quarterly non-GAAP earnings (excluding 30 cents from non-recurring items) of 99 cents per share beat the consensus estimate by 30.3% but decreased 6.6% on a year-over-year basis. Non-GAAP operating revenues of $412.4 million beat the consensus mark by 7% and increased 2.9% year over year.
Segmental Revenues
The Consumer Services segment’s revenues totaled $139.8 million, down 12% from the year-ago quarter’s level. B2B Services generated revenues of $171.3 million which increased 27.9% year over year. Money Movement Services’ revenues improved marginally year over year to $98.24 million.
Key Metrics
Gross dollar volume increased 33.9% year over year to $23.3 billion. Purchase volume fell 14.6% from the prior-year quarter’s level to $6.15 billion. GDOT ended the quarter with 3.84 million active accounts, down 22.1% year over year.
Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote
Operating Results
Adjusted EBITDA was $82.5 million, down 9% on a year-over-year basis. Adjusted EBITDA margin of 20% was down from the year-ago quarter’s level of 22.9%.
Balance Sheet
Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $722 million compared with $813.9 million reported at the end of the prior quarter. GDOT had no long-term debt. It generated $100.5 million in cash from operating activities in the quarter.
Reposts 2023 Guidance
GDOT expects non-GAAP EPS in the range of $1.77-$1.93. The midpoint of the guided range ($1.85) is above the current Zacks Consensus Estimate of $1.82.
Non-GAAP total operating revenues are anticipated to be between $1.376 billion and $1.462 billion. The midpoint of the guided range ($1.419 billion) is above the Zacks Consensus Estimate of $1.41 billion.
Adjusted EBITDA is projected in the range of $180-$190 million.
Green Dot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results. EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure.
Total revenues of $1.3 billion surpassed the consensus estimate by 1.5%. The top line decreased 4.5% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.