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Green Dot (GDOT) Q4 Earnings Miss Estimates, Stock Dips 7%
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Green Dot Corporation (GDOT - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
The company’s earnings miss disappointed investors, as the stock declined 6.6% since it reported fourth-quarter results on Feb 27.
GDOT’s earnings per share (excluding 59 cents from non-recurring items) of 14 cents missed the consensus estimate by 17.7%. The metric declined 58.8% on a year-over-year basis. Revenues of $361.7 million outpaced the Zacks Consensus Estimate by 3.3% and improved 5.6% year over year.
The company’s shares have declined 45.6% in the past six months, underperforming the 12.3% rally of the industry it belongs to.
Green Dot Corporation Price, Consensus and EPS Surprise
B2B Services revenues increased 39.7% year over year to $221.8 million. The same surpassed our model estimate of $174.8 million. The uptick was primarily driven by GDOT’s BaaS channel.
The Consumer Services segment’s revenues totaled $111.5 million, down 21.1% from the year-ago level. It missed our estimate of $117.9 million. The decrease in revenues from retail and direct-to-consumer channels affected this segment’s revenues.
Money Movement Services’ revenues declined 11.2% year over year to $29.4 million. It missed our estimate of $55.5 million. This segment’s revenues are affected due to the decline in cash transfer volume and the timing of tax refund volume.
Corporate and Other revenues declined more than 100% from the year-ago quarter to a loss in revenues of $1 million. The metric beat our estimate of a loss in revenues of $5.3 million. The loss in revenues is due to higher interest rates, as this segment’s revenues reflect interest income at the bank.
Key Metrics
GDOT’s gross dollar volume rose 31.7% year over year to $26.4 billion. Purchase volume fell 16.2% from the year-ago quarter to $5.3 billion. The company ended the quarter with 3.6 million active accounts, down 14% year over year.
Operating Results
Adjusted EBITDA was $25.7 million, down 27.3% on a year-over-year basis. The adjusted EBITDA margin declined 340 basis points to 7.1%.
Balance Sheet and Cash Flow
Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $682.3 million compared with $711.4 million in third-quarter 2023. GDOT had no long-term debt. It utilized $34.9 million of cash from operating activities in the quarter under review. CapEx was $20.4 million.
Guidance
For 2024, GDOT expects earnings per share of $1.45-$1.59. The Zacks Consensus Estimate is pegged at $1.85. Total operating revenues are anticipated between $1.55 billion and $1.6 billion. The mid-point of the guided range ($1.58 billion) is above the Zacks Consensus Estimate of $1.56 billion. Adjusted EBITDA is projected to be $170-$180 million.
Green Dot currently carries a Zacks Rank #4 (Sell).
CAR’s earnings of $7.1 per share beat the Zacks Consensus Estimate by 62.8% but plunged 32.1% year over year. Total revenues of $2.76 billion missed the consensus estimate by 1.3% and decreased marginally from the year-ago quarter.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected fourth-quarter 2023 results.
IPG’s earnings of $1.18 per share surpassed the Zacks Consensus Estimate by 1.7% and increased 15.7% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.6 billion outpaced the consensus estimate marginally and increased 1.4% year over year. Total revenues of $3 billion rose 1.3% year over year.
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Green Dot (GDOT) Q4 Earnings Miss Estimates, Stock Dips 7%
Green Dot Corporation (GDOT - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
The company’s earnings miss disappointed investors, as the stock declined 6.6% since it reported fourth-quarter results on Feb 27.
GDOT’s earnings per share (excluding 59 cents from non-recurring items) of 14 cents missed the consensus estimate by 17.7%. The metric declined 58.8% on a year-over-year basis. Revenues of $361.7 million outpaced the Zacks Consensus Estimate by 3.3% and improved 5.6% year over year.
The company’s shares have declined 45.6% in the past six months, underperforming the 12.3% rally of the industry it belongs to.
Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote
Segmental Revenues
B2B Services revenues increased 39.7% year over year to $221.8 million. The same surpassed our model estimate of $174.8 million. The uptick was primarily driven by GDOT’s BaaS channel.
The Consumer Services segment’s revenues totaled $111.5 million, down 21.1% from the year-ago level. It missed our estimate of $117.9 million. The decrease in revenues from retail and direct-to-consumer channels affected this segment’s revenues.
Money Movement Services’ revenues declined 11.2% year over year to $29.4 million. It missed our estimate of $55.5 million. This segment’s revenues are affected due to the decline in cash transfer volume and the timing of tax refund volume.
Corporate and Other revenues declined more than 100% from the year-ago quarter to a loss in revenues of $1 million. The metric beat our estimate of a loss in revenues of $5.3 million. The loss in revenues is due to higher interest rates, as this segment’s revenues reflect interest income at the bank.
Key Metrics
GDOT’s gross dollar volume rose 31.7% year over year to $26.4 billion. Purchase volume fell 16.2% from the year-ago quarter to $5.3 billion. The company ended the quarter with 3.6 million active accounts, down 14% year over year.
Operating Results
Adjusted EBITDA was $25.7 million, down 27.3% on a year-over-year basis. The adjusted EBITDA margin declined 340 basis points to 7.1%.
Balance Sheet and Cash Flow
Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $682.3 million compared with $711.4 million in third-quarter 2023. GDOT had no long-term debt. It utilized $34.9 million of cash from operating activities in the quarter under review. CapEx was $20.4 million.
Guidance
For 2024, GDOT expects earnings per share of $1.45-$1.59. The Zacks Consensus Estimate is pegged at $1.85. Total operating revenues are anticipated between $1.55 billion and $1.6 billion. The mid-point of the guided range ($1.58 billion) is above the Zacks Consensus Estimate of $1.56 billion. Adjusted EBITDA is projected to be $170-$180 million.
Green Dot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Avis Budget Group, Inc. (CAR - Free Report) reported mixed fourth-quarter 2023 results.
CAR’s earnings of $7.1 per share beat the Zacks Consensus Estimate by 62.8% but plunged 32.1% year over year. Total revenues of $2.76 billion missed the consensus estimate by 1.3% and decreased marginally from the year-ago quarter.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected fourth-quarter 2023 results.
IPG’s earnings of $1.18 per share surpassed the Zacks Consensus Estimate by 1.7% and increased 15.7% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.6 billion outpaced the consensus estimate marginally and increased 1.4% year over year. Total revenues of $3 billion rose 1.3% year over year.