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Green Dot (GDOT) Targets Long-Term Growth Through BaaS Platforms
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Green Dot Corporation (GDOT - Free Report) gains from the increase in investment in product and platform parts. The company’s fast-growingbanking-as-a-service (BaaS) platforms help expand its global footprint.
Green Dot reported strong first-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate. 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.
GDOT has outperformed the Financial Transaction Services market in the year-to-date period, gaining 14.8% against the industry’s 7.1% growth.
Green Dot has been focusing on long-term growth through the acquisition of long-term users of its products, improving its image, building market adoption and awareness of products, increasing card usage and customer retention.
BaaS account programs are helping the company grow its addressable markets through partnering with some top consumer and technology companies including Amazon, Apple, Intuit and Uber to design and develop fintech banking solutions.
The company has been benefiting from the long-standing relationship with Walmart. Green Dot provides Walmart-branded GPS cards since the launch of the Walmart MoneyCard program in 2007. Green Dot’s operating revenues derived from products and services offered through Walmart represented 21%, 24% and 27% of total operating revenues in 2022, 2021 and 2020, respectively.
Investors interested in the Zacks Business Services sector can also consider the following stocks:
Rollins (ROL - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate of Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earning surprise history, beating the consensus mark in three of the four trailing quarters and missing on one instance, the average surprise being 5.53%.
ROL currently carries a Zacks Rank of 2.
Omnicom Group (OMC - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate of Omnicom’s revenues suggests an increase of 1.5% year over year to $3.62 billion and the same for earnings indicates a 7.1% increase to $1.8 per share. The company has an impressive earning surprise history, beating the consensus mark in all four trailing quarters, the average surprise being 9.1%.
OMC has a Value score of A and currently carries a Zacks Rank of 2.
Maximus (MMS - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate of Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earning surprise history, beating the consensus mark in three instances and missing on one instance, the average surprise being 9.6%.
MMS has a VGM score of A along with a Zacks Rank of 2.
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Green Dot (GDOT) Targets Long-Term Growth Through BaaS Platforms
Green Dot Corporation (GDOT - Free Report) gains from the increase in investment in product and platform parts. The company’s fast-growingbanking-as-a-service (BaaS) platforms help expand its global footprint.
Green Dot reported strong first-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate. 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.
GDOT has outperformed the Financial Transaction Services market in the year-to-date period, gaining 14.8% against the industry’s 7.1% growth.
Green Dot Corporation Price
Green Dot Corporation price | Green Dot Corporation Quote
Current Situation of Green Dot
Green Dot has been focusing on long-term growth through the acquisition of long-term users of its products, improving its image, building market adoption and awareness of products, increasing card usage and customer retention.
BaaS account programs are helping the company grow its addressable markets through partnering with some top consumer and technology companies including Amazon, Apple, Intuit and Uber to design and develop fintech banking solutions.
The company has been benefiting from the long-standing relationship with Walmart. Green Dot provides Walmart-branded GPS cards since the launch of the Walmart MoneyCard program in 2007. Green Dot’s operating revenues derived from products and services offered through Walmart represented 21%, 24% and 27% of total operating revenues in 2022, 2021 and 2020, respectively.
Zacks Rank and Other Stocks to Consider
GDOT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Investors interested in the Zacks Business Services sector can also consider the following stocks:
Rollins (ROL - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate of Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earning surprise history, beating the consensus mark in three of the four trailing quarters and missing on one instance, the average surprise being 5.53%.
ROL currently carries a Zacks Rank of 2.
Omnicom Group (OMC - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate of Omnicom’s revenues suggests an increase of 1.5% year over year to $3.62 billion and the same for earnings indicates a 7.1% increase to $1.8 per share. The company has an impressive earning surprise history, beating the consensus mark in all four trailing quarters, the average surprise being 9.1%.
OMC has a Value score of A and currently carries a Zacks Rank of 2.
Maximus (MMS - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate of Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earning surprise history, beating the consensus mark in three instances and missing on one instance, the average surprise being 9.6%.
MMS has a VGM score of A along with a Zacks Rank of 2.