Estimates for Euronet Worldwide, Inc. (EEFT - Free Report) have been revised upward over the past seven days, reflecting brokers’ confidence in the stock. The stock has seen the Zacks Consensus Estimate for 2019 earnings move 2.3% north.
Shares of this Zacks Rank #1 (Strong Buy) company have rallied nearly 18% in the past year against the industry’s decline of 9.9%.
Now let’s quickly take a look at the factors that make Euronet stock an investor favorite.
Top-Line Growth: Euronet has witnessed consistent growth in its revenue base with an impressive CAGR of 12.4% during the 2013-2017 time frame. The metric was up by 16% in the first six months of 2018 continuing with the momentum. The company is also well-poised to sustain its revenue growth trend going forward.
Positive Earnings Surprise History: The company flaunts an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in all the trailing four quarters with an average beat of 0.38%. This shows the company’s operational excellence.
Constant Inorganic Growth: The company has been consistently working on boosting its portfolio through inorganic growth. It recently widened its customer base through its ATM networks in India and several European countries along with the buyout of YourCash. New ATM purchases and constant collaborations have bolstered its portfolio, which in turn, have led to revenue growth.
Solid Segmental Performances: The company’s EFT Processing and Money Transfer Segments have been steadily performing well over the last few quarters. While the EFT Processing segment delivered double-digit growth for the sixth consecutive year, the Money Transfer unit’s robust performance is driven by the growth of its physical and digital distribution channels.
The extension of the Walmart deal has been the primary reason for the company’s double-digit transaction growth. The buyouts of HiFX, IME and XE should also lead to long-term growth of the Money Transfer segment.
Growth Projections: The Zacks Consensus Estimate for current-year earnings per share is pegged at $5.39, representing a year-over-year increase of 17.69% on 12.9% higher revenues of $2.54 billion.
For 2019, the consensus estimate for earnings per share stands at $6.56 on $2.85 billion revenues, translating into a respective 21.8% and 11.9% year-over-year rise. The expected long-term earnings growth is pegged at 13.30%.
Other Stocks to Consider
Investors looking for other top-ranked stocks in the same sector may also check out On Deck Capital, Inc. (ONDK - Free Report) , Athene Holding Ltd. (ATH - Free Report) and Synchrony Financial (SYF - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
On Deck Capital operates as an online platform for small business lending in the United States, Canada and Australia. With a Zacks Rank of 1, it managed to deliver positive results in three of the last four quarters with an average beat of 58.34%.
Athene, a retirement services company, issues, reinsures and acquires retirement savings products in the United States, the District of Columbia as well as Germany. It carries a Zacks Rank #2 (Buy) and pulled off an average trailing four-quarter earnings surprise of 15.03%.
Synchrony Financial operates as a consumer financial services company in the United States. It holds a Zacks Rank of 2 and came up with an average preceding four-quarter positive surprise of 11.21%.
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