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Euronet's (EEFT) Earnings in Line, Revenues Beat Estimates
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Euronet Worldwide, Inc.’s (EEFT - Free Report) second-quarter 2018 earnings of $1.32 per share were in line with the Zacks Consensus Estimate. While the bottom line improved 21% year over year.
The company’s reported net income declined 11.8% to 82 cents earnings per share in the quarter under review.
The company’s total revenues were $622.2 million, up 16% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 0.6%.
The second-quarter revenues reflect solid performances by the EFT Processing and Money Transfer segments, partially offset by the epay Segment due to the adoption of the Accounting Standards Codification Topic 606 (ASC 606).
Euronet’s total transactions were 968 million, increased 8% year over year.
Adjusted operating income increased nearly 27% to $52.9 million.
Segment Results
EFT Processing Segment’s total revenues grew 25% (18% on constant currency basis) year over year to $194.9 million on the back of increased transactions. Adjusted EBITDA amounted to $69.3 million, a rise of 26% (19% at constant currency) from the year-ago period. Operating income for the segment was $52.9 million, up 35% year over year.
The epay Segment’s total revenues inched up 1% year over year to $166.5 million (down 3% on a constant currency basis). This decrease was because of lower transactions in the quarter under review. Adjusted EBITDA amounted to $18.2 million, a 4% increase from the year-earlier quarter’s figure. This included a 2% decline on a constant currency basis. Operating income stand at $16.3 million, up 10% year over year.
The Money Transfer Segment’s total revenues increased 21% (17% at cc) year over year to $217.1 million, backed by 18% increase in transactions. Adjusted EBITDA amounted to $40.7 million, a 26% improvement (20% increase on constant currency basis) from the prior-year quarter. Operating income for this segment totaled $32.7 million, up 31% year over year.
Corporate and other Segment reported an expense of $11.5 million for the quarter under review.
Financial Update
Total assets at the quarter end were $3.4 billion, up 8.5% from the level at year-end 2017.
Cash and cash equivalents soared 42% to $1.2 billion from the figure at year-end 2017.
The company’s long-term debt decreased 8% to $372 million from the year-end count as of December 2017.
EPR Properties (EPR - Free Report) is set to release second-quarter 2018 earnings on Jul 30 and the consensus mark for the same stands at $1.86 per share, representing 44% increase from the year-ago quarter. The stock carries a Zacks Rank of 4 .
Moody's Corporation (MCO - Free Report) is slated to release second-quarter 2018 earnings on Jul 27 and the Zacks Consensus Estimate for the same is pegged at $1.88, reflecting a year-over-year rise of 24.5%. The stock carries a Zacks Rank #3 (Hold).
American Assets Trust, Inc. (AAT - Free Report) is set to release second-quarter 2018 earnings on Jul 31 and the consensus estimate for the same is 51 cents per share, indicating 4.1% growth from the year-ago quarter. The stock has a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Euronet's (EEFT) Earnings in Line, Revenues Beat Estimates
Euronet Worldwide, Inc.’s (EEFT - Free Report) second-quarter 2018 earnings of $1.32 per share were in line with the Zacks Consensus Estimate. While the bottom line improved 21% year over year.
Euronet Worldwide, Inc. Price and EPS Surprise
Euronet Worldwide, Inc. Price and EPS Surprise | Euronet Worldwide, Inc. Quote
The company’s reported net income declined 11.8% to 82 cents earnings per share in the quarter under review.
The company’s total revenues were $622.2 million, up 16% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 0.6%.
The second-quarter revenues reflect solid performances by the EFT Processing and Money Transfer segments, partially offset by the epay Segment due to the adoption of the Accounting Standards Codification Topic 606 (ASC 606).
Euronet’s total transactions were 968 million, increased 8% year over year.
Adjusted operating income increased nearly 27% to $52.9 million.
Segment Results
EFT Processing Segment’s total revenues grew 25% (18% on constant currency basis) year over year to $194.9 million on the back of increased transactions. Adjusted EBITDA amounted to $69.3 million, a rise of 26% (19% at constant currency) from the year-ago period. Operating income for the segment was $52.9 million, up 35% year over year.
The epay Segment’s total revenues inched up 1% year over year to $166.5 million (down 3% on a constant currency basis). This decrease was because of lower transactions in the quarter under review. Adjusted EBITDA amounted to $18.2 million, a 4% increase from the year-earlier quarter’s figure. This included a 2% decline on a constant currency basis. Operating income stand at $16.3 million, up 10% year over year.
The Money Transfer Segment’s total revenues increased 21% (17% at cc) year over year to $217.1 million, backed by 18% increase in transactions. Adjusted EBITDA amounted to $40.7 million, a 26% improvement (20% increase on constant currency basis) from the prior-year quarter. Operating income for this segment totaled $32.7 million, up 31% year over year.
Corporate and other Segment reported an expense of $11.5 million for the quarter under review.
Financial Update
Total assets at the quarter end were $3.4 billion, up 8.5% from the level at year-end 2017.
Cash and cash equivalents soared 42% to $1.2 billion from the figure at year-end 2017.
The company’s long-term debt decreased 8% to $372 million from the year-end count as of December 2017.
Zacks Rank
Euronet carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Releases From the Finance Sector
EPR Properties (EPR - Free Report) is set to release second-quarter 2018 earnings on Jul 30 and the consensus mark for the same stands at $1.86 per share, representing 44% increase from the year-ago quarter. The stock carries a Zacks Rank of 4 .
Moody's Corporation (MCO - Free Report) is slated to release second-quarter 2018 earnings on Jul 27 and the Zacks Consensus Estimate for the same is pegged at $1.88, reflecting a year-over-year rise of 24.5%. The stock carries a Zacks Rank #3 (Hold).
American Assets Trust, Inc. (AAT - Free Report) is set to release second-quarter 2018 earnings on Jul 31 and the consensus estimate for the same is 51 cents per share, indicating 4.1% growth from the year-ago quarter. The stock has a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>