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Euronet (EEFT) Q4 Earnings Beat on International Transactions
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Euronet Worldwide, Inc. (EEFT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 7.4%. The bottom line climbed 35% year over year.
Total revenues advanced 11% year over year, or 7% on a constant-currency basis, to $957.7 million in the quarter under review. The top line outpaced the consensus mark by 2.2%.
The quarterly results received an impetus from the continued rebound in international transactions, wage gains and a prolonged travel season in Europe. The Money Transfer business benefited from growth in retail and digital transactions, and prudent cost management efforts. However, the upside was partly offset by an elevated expense level.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
EEFT’s net income was $1.43 per share, which improved 9.2% year over year in the fourth quarter. Operating income of $97.4 million rose 23% year over year, or 22% on a constant-currency basis.
Total operating expenses increased 9.5% year over year to $3.3 billion in the quarter under review due to higher direct operating costs, salaries and benefits and selling, general and administrative expenses.
Adjusted EBITDA advanced 16% year over year, or 14% on a constant-currency basis, to $147.6 million.
Segmental Performances
The EFT Processing segment’s revenues of $237.9 million improved 13% year over year, or 9% on a constant-currency basis, in the fourth quarter. The figure surpassed the Zacks Consensus Estimate of $223 million.
Adjusted EBITDA rose 20% year over year, or 21% on a constant-currency basis, to $52.2 million.
Operating income was $25.5 million in the segment, which climbed 34% year over year, or 40% on a constant-currency basis, in the quarter under review. Also, the unit’s total transactions increased 30% year over year to 2,369 million, higher than the consensus mark of 2,186 million.
The segmental results benefited on the back of an increase in transactions across most of its markets and an expanding merchant acquiring business.
The epay segment recorded revenues of $316.7 million, which improved 11% year over year, or 7% on a constant-currency basis, in the fourth quarter. The figure beat the Zacks Consensus Estimate of $298 million.
Adjusted EBITDA rose 7% year over year, or 3% on a constant-currency basis, to $45.4 million in the quarter under review.
Operating income amounted to $43.6 million, which grew 6% year over year, or 3% on a constant-currency basis. The figure was higher than the consensus mark of $34.8 million. However, transactions fell 4% year over year to 906 million and also fell short of the consensus mark of 1,063 million. The metric was hurt by a decline in low-value transactions across India.
Results in the unit were aided by an increase in digital media and mobile sales. Yet, the upside was partly offset by a decline in promotional activity in the fourth quarter of 2023 compared with the year-ago quarter.
The Money Transfer segment’s revenues were $405.1 million, which improved 9% year over year, or 7% on a constant-currency basis. However, the figure missed the Zacks Consensus Estimate of $418 million.
Adjusted EBITDA of $59.3 million advanced 23% year over year, or 20% on a constant-currency basis, in the fourth quarter.
Operating income climbed 30% year over year, or 27% on a constant-currency basis, to $51.9 million. Yet, the figure lagged the consensus mark of $64 million. Total transactions grew 8% year over year to 42.4 million in the quarter under review but came lower than the consensus mark of 45 million.
Growth in U.S.-outbound transactions and international-originated money transfers contributed to the segment’s quarterly results. The money transfers originated in the Middle East and Asia, and Europe witnessed year-over-year increases of 20% and 8%, respectively. However, the upside was partly offset by lower intra-U.S. business transactions.
Corporate and Other expenses of $23.6 million escalated 12.4% year over year due to an increase in long and short-term compensation costs.
Financial Update (as of Dec 31, 2023)
Euronet exited the fourth quarter with cash and cash equivalents of $1.3 billion, which rose 10.9% from the 2022-end level. Total assets of $5.9 billion grew 9.1% from the figure at 2022 end.
Debt obligations, net of the current portion, were $1.7 billion, up 6.6% from the figure as of Dec 31, 2022. Short-term debt totaled $151.9 million.
Equity of $1.2 billion inched up 0.4% from the 2022-end figure.
There was roughly $661.2 million left under EEFT’s revolving credit facilities at the fourth-quarter end.
Full-Year Update
In 2023, Euronet’s adjusted earnings per share ("EPS") advanced 15% year over year to $7.46. Total revenues of $3.7 billion improved 10% year over year, or 9% on a constant-currency basis.
Operating income of $432.6 million rose 12% year over year.
Adjusted EBITDA grew 9% year over year to $618.7 million. Revenues from the EFT Processing segment advanced 15% year over year in 2023, while the same from both epay and Money Transfer units witnessed year-over-year increases of 8%.
2024 Bottom-Line View Reaffirmed
Management continues to expect adjusted EPS to record 10-15% year-over-year growth in 2024.
Here are some other Finance sector players that have reported fourth-quarter results so far. The bottom-line results of MarketAxess Holdings Inc. (MKTX - Free Report) , Credit Acceptance Corporation (CACC - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat the respective Zacks Consensus Estimate.
MarketAxess reported fourth-quarter 2023 EPS of $1.84 beat the Zacks Consensus Estimate by 7%. Moreover, the bottom line increased from $1.58 per share a year ago. Total revenues increased 10.9% year over year to $197.2 million in the quarter under review. Also, the top line beat the consensus mark by 0.7%. Commission revenues increased 8.5% year over year to $171.9 million in the fourth quarter. MKTX reported an operating income of $77 million, which decreased 0.8% year over year in the fourth quarter. Total credit trading volume increased 10.4% year over year to $814.4 billion in the quarter under review, while average daily volume reached $13.1 billion (up 8.9% year over year).
Credit Acceptance’s fourth-quarter 2023 earnings of $7.29 per share surpassed the Zacks Consensus Estimate of $4.52 by a significant margin. However, the bottom line reflects a 23.9% fall from the year-ago quarter. Excluding non-recurring items, net income was $129.1 million or $10.06 per share, down from $156.1 million or $11.74 per share in the prior-year quarter. Total quarterly GAAP revenues of CACC were $491.6 million, up 7.1% year over year. The top line beat the Zacks Consensus Estimate of $478.8 million. Provision for credit losses was $163.7 million in the reported quarter, up 25.6% year over year. As of Dec 31, 2023, net loans receivables were $6.96 billion, up 10.4% from the December 2022 level. Consumer loan assignment volumes in terms of units and dollar volumes rose 26.7% and 21.3%, respectively, on a year-over-year basis.
Nasdaq reported fourth-quarter 2023 adjusted EPS of 72 cents, beating the Zacks Consensus Estimate by 2.9%. The bottom line improved 12.5% year over year. Revenues of $1.1 billion increased 23% year over year. The top line beat the consensus estimate by 5%. Annualized Recurring Revenue (ARR) increased 29% year over year. Annualized SaaS revenues increased 23% and represented 35% of ARR. Market Services net revenues were $247 million, up 1%. Revenues at the Solutions business of NDAQ increased 32% year over year to $860 million. Operating margin of 55% expanded 600 basis points year over year.
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Euronet (EEFT) Q4 Earnings Beat on International Transactions
Euronet Worldwide, Inc. (EEFT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 7.4%. The bottom line climbed 35% year over year.
Total revenues advanced 11% year over year, or 7% on a constant-currency basis, to $957.7 million in the quarter under review. The top line outpaced the consensus mark by 2.2%.
The quarterly results received an impetus from the continued rebound in international transactions, wage gains and a prolonged travel season in Europe. The Money Transfer business benefited from growth in retail and digital transactions, and prudent cost management efforts. However, the upside was partly offset by an elevated expense level.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote
Q4 Update
EEFT’s net income was $1.43 per share, which improved 9.2% year over year in the fourth quarter. Operating income of $97.4 million rose 23% year over year, or 22% on a constant-currency basis.
Total operating expenses increased 9.5% year over year to $3.3 billion in the quarter under review due to higher direct operating costs, salaries and benefits and selling, general and administrative expenses.
Adjusted EBITDA advanced 16% year over year, or 14% on a constant-currency basis, to $147.6 million.
Segmental Performances
The EFT Processing segment’s revenues of $237.9 million improved 13% year over year, or 9% on a constant-currency basis, in the fourth quarter. The figure surpassed the Zacks Consensus Estimate of $223 million.
Adjusted EBITDA rose 20% year over year, or 21% on a constant-currency basis, to $52.2 million.
Operating income was $25.5 million in the segment, which climbed 34% year over year, or 40% on a constant-currency basis, in the quarter under review. Also, the unit’s total transactions increased 30% year over year to 2,369 million, higher than the consensus mark of 2,186 million.
The segmental results benefited on the back of an increase in transactions across most of its markets and an expanding merchant acquiring business.
The epay segment recorded revenues of $316.7 million, which improved 11% year over year, or 7% on a constant-currency basis, in the fourth quarter. The figure beat the Zacks Consensus Estimate of $298 million.
Adjusted EBITDA rose 7% year over year, or 3% on a constant-currency basis, to $45.4 million in the quarter under review.
Operating income amounted to $43.6 million, which grew 6% year over year, or 3% on a constant-currency basis. The figure was higher than the consensus mark of $34.8 million. However, transactions fell 4% year over year to 906 million and also fell short of the consensus mark of 1,063 million. The metric was hurt by a decline in low-value transactions across India.
Results in the unit were aided by an increase in digital media and mobile sales. Yet, the upside was partly offset by a decline in promotional activity in the fourth quarter of 2023 compared with the year-ago quarter.
The Money Transfer segment’s revenues were $405.1 million, which improved 9% year over year, or 7% on a constant-currency basis. However, the figure missed the Zacks Consensus Estimate of $418 million.
Adjusted EBITDA of $59.3 million advanced 23% year over year, or 20% on a constant-currency basis, in the fourth quarter.
Operating income climbed 30% year over year, or 27% on a constant-currency basis, to $51.9 million. Yet, the figure lagged the consensus mark of $64 million. Total transactions grew 8% year over year to 42.4 million in the quarter under review but came lower than the consensus mark of 45 million.
Growth in U.S.-outbound transactions and international-originated money transfers contributed to the segment’s quarterly results. The money transfers originated in the Middle East and Asia, and Europe witnessed year-over-year increases of 20% and 8%, respectively. However, the upside was partly offset by lower intra-U.S. business transactions.
Corporate and Other expenses of $23.6 million escalated 12.4% year over year due to an increase in long and short-term compensation costs.
Financial Update (as of Dec 31, 2023)
Euronet exited the fourth quarter with cash and cash equivalents of $1.3 billion, which rose 10.9% from the 2022-end level. Total assets of $5.9 billion grew 9.1% from the figure at 2022 end.
Debt obligations, net of the current portion, were $1.7 billion, up 6.6% from the figure as of Dec 31, 2022. Short-term debt totaled $151.9 million.
Equity of $1.2 billion inched up 0.4% from the 2022-end figure.
There was roughly $661.2 million left under EEFT’s revolving credit facilities at the fourth-quarter end.
Full-Year Update
In 2023, Euronet’s adjusted earnings per share ("EPS") advanced 15% year over year to $7.46. Total revenues of $3.7 billion improved 10% year over year, or 9% on a constant-currency basis.
Operating income of $432.6 million rose 12% year over year.
Adjusted EBITDA grew 9% year over year to $618.7 million. Revenues from the EFT Processing segment advanced 15% year over year in 2023, while the same from both epay and Money Transfer units witnessed year-over-year increases of 8%.
2024 Bottom-Line View Reaffirmed
Management continues to expect adjusted EPS to record 10-15% year-over-year growth in 2024.
Zacks Rank
Euronet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Sector Players
Here are some other Finance sector players that have reported fourth-quarter results so far. The bottom-line results of MarketAxess Holdings Inc. (MKTX - Free Report) , Credit Acceptance Corporation (CACC - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat the respective Zacks Consensus Estimate.
MarketAxess reported fourth-quarter 2023 EPS of $1.84 beat the Zacks Consensus Estimate by 7%. Moreover, the bottom line increased from $1.58 per share a year ago. Total revenues increased 10.9% year over year to $197.2 million in the quarter under review. Also, the top line beat the consensus mark by 0.7%. Commission revenues increased 8.5% year over year to $171.9 million in the fourth quarter. MKTX reported an operating income of $77 million, which decreased 0.8% year over year in the fourth quarter. Total credit trading volume increased 10.4% year over year to $814.4 billion in the quarter under review, while average daily volume reached $13.1 billion (up 8.9% year over year).
Credit Acceptance’s fourth-quarter 2023 earnings of $7.29 per share surpassed the Zacks Consensus Estimate of $4.52 by a significant margin. However, the bottom line reflects a 23.9% fall from the year-ago quarter. Excluding non-recurring items, net income was $129.1 million or $10.06 per share, down from $156.1 million or $11.74 per share in the prior-year quarter. Total quarterly GAAP revenues of CACC were $491.6 million, up 7.1% year over year. The top line beat the Zacks Consensus Estimate of $478.8 million. Provision for credit losses was $163.7 million in the reported quarter, up 25.6% year over year. As of Dec 31, 2023, net loans receivables were $6.96 billion, up 10.4% from the December 2022 level. Consumer loan assignment volumes in terms of units and dollar volumes rose 26.7% and 21.3%, respectively, on a year-over-year basis.
Nasdaq reported fourth-quarter 2023 adjusted EPS of 72 cents, beating the Zacks Consensus Estimate by 2.9%. The bottom line improved 12.5% year over year. Revenues of $1.1 billion increased 23% year over year. The top line beat the consensus estimate by 5%. Annualized Recurring Revenue (ARR) increased 29% year over year. Annualized SaaS revenues increased 23% and represented 35% of ARR. Market Services net revenues were $247 million, up 1%. Revenues at the Solutions business of NDAQ increased 32% year over year to $860 million. Operating margin of 55% expanded 600 basis points year over year.