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.
Green Dot (GDOT) Stock Plunges 34% Since Q3 Earnings Miss
Read MoreHide Full Article
Green Dot Corporation (GDOT - Free Report) reported mixed third-quarter 2023 results, with earnings lagging the Zacks Consensus Estimate but revenues beat the same. Earnings miss might have disappointed investors as the stock has dipped 34% since the earnings release on Nov 9.
Quarterly non-GAAP earnings (excluding 26 cents from non-recurring items) of 14 cents per share fell short of the consensus estimate by 30%. Also, the bottom line decreased 68.2% on a year-over-year basis. Non-GAAP operating revenues of $348.6 million outpaced the consensus mark by 5.2% and improved 1.4% year over year.
Segmental Revenues
The Consumer Services segment’s revenues totaled $118.2 million, down 13% from the year-ago level. The metric is in line with our estimate of $118 million.
B2B Services revenues increased 25.9% year over year to $199.2 million. Our model predicted the metric to be $162 million.
Green Dot Corporation Price, Consensus and EPS Surprise
Money Movement Services’ revenues declined 14.8% year over year to $32.1 million. We suggested the metric to be $57.9 million.
Key Metrics
Gross dollar volume rose 32.8% year over year to $24.8 billion. Purchase volume fell 16.8% from the prior-year level to $5.4 billion. GDOT ended the quarter with 3.67 million active accounts, down 15.2% year over year.
Operating Results
Adjusted EBITDA was $23.74 million, down 48% on a year-over-year basis. Adjusted EBITDA margin of 6.8% tumbled from the year-ago level of 13.5%.
Balance Sheet
Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $711.4 million compared with $661.5 million in the prior quarter. GDOT had no long-term debt. It generated $4.7 million of cash from operating activities in the quarter under review.
2023 Guidance
GDOT expects non-GAAP EPS in the range of $1.62-$1.69 (prior view: $1.80-$1.90). The midpoint of the guided range ($1.655) is below the current Zacks Consensus Estimate of $1.84.
Non-GAAP total operating revenues are now anticipated to be between $1.465 billion and $1.480 billion (prior view: $1.376 billion and $1.462 billion). The midpoint of the guided range ($1.4725 billion) is above the Zacks Consensus Estimate of $1.44 billion.
Adjusted EBITDA is projected in the range of $170 million and $175 million (prior view: $182-$188 million).
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Green Dot (GDOT) Stock Plunges 34% Since Q3 Earnings Miss
Green Dot Corporation (GDOT - Free Report) reported mixed third-quarter 2023 results, with earnings lagging the Zacks Consensus Estimate but revenues beat the same. Earnings miss might have disappointed investors as the stock has dipped 34% since the earnings release on Nov 9.
Quarterly non-GAAP earnings (excluding 26 cents from non-recurring items) of 14 cents per share fell short of the consensus estimate by 30%. Also, the bottom line decreased 68.2% on a year-over-year basis. Non-GAAP operating revenues of $348.6 million outpaced the consensus mark by 5.2% and improved 1.4% year over year.
Segmental Revenues
The Consumer Services segment’s revenues totaled $118.2 million, down 13% from the year-ago level. The metric is in line with our estimate of $118 million.
B2B Services revenues increased 25.9% year over year to $199.2 million. Our model predicted the metric to be $162 million.
Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote
Money Movement Services’ revenues declined 14.8% year over year to $32.1 million. We suggested the metric to be $57.9 million.
Key Metrics
Gross dollar volume rose 32.8% year over year to $24.8 billion. Purchase volume fell 16.8% from the prior-year level to $5.4 billion. GDOT ended the quarter with 3.67 million active accounts, down 15.2% year over year.
Operating Results
Adjusted EBITDA was $23.74 million, down 48% on a year-over-year basis. Adjusted EBITDA margin of 6.8% tumbled from the year-ago level of 13.5%.
Balance Sheet
Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $711.4 million compared with $661.5 million in the prior quarter. GDOT had no long-term debt. It generated $4.7 million of cash from operating activities in the quarter under review.
2023 Guidance
GDOT expects non-GAAP EPS in the range of $1.62-$1.69 (prior view: $1.80-$1.90). The midpoint of the guided range ($1.655) is below the current Zacks Consensus Estimate of $1.84.
Non-GAAP total operating revenues are now anticipated to be between $1.465 billion and $1.480 billion (prior view: $1.376 billion and $1.462 billion). The midpoint of the guided range ($1.4725 billion) is above the Zacks Consensus Estimate of $1.44 billion.
Adjusted EBITDA is projected in the range of $170 million and $175 million (prior view: $182-$188 million).
Zacks Rank
Green Dot currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.