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Euronet's (EEFT) Earnings and Revenues Top Estimates in Q3

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Euronet Worldwide, Inc. (EEFT - Free Report) delivered third-quarter 2018 earnings of $2.16 per share, beating the Zacks Consensus Estimate by 2.8%. Moreover, the bottom line surged 34.2% year over year.

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise | Euronet Worldwide, Inc. Quote

This solid growth was driven by performances across all its three segments, namely, EFT, Money Transfer and epay segments.

The company’s reported net income increased 5% to $1.89 earnings per share in the quarter under review.

Its total revenues were $715 million, up 12.1% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 0.8%.

Euronet’s total transactions were 1.02 billion, increased 10% year over year, primarily driven by growth in Europe and India through both ATMs and point-of-sale terminals.

Adjusted operating income increased nearly 29% to $150.9 million.

Segment Results

EFT Processing Segment’s total revenues grew 16% (18% on constant currency basis) year over year to $261.7 million on the back of increased transactions and higher number of ATMs. Adjusted EBITDA amounted to $127.1 million, a rise of 25% (26% at constant currency) from the year-ago period. Operating income for the segment was $110.4 million, up 27% year over year (up 28% on constant currency basis).

The epay Segment’s total revenues inched up 1% year over year to $185.4 million (up 3% on constant currency basis). Adjusted EBITDA amounted to $18.3 million, a 1% increase or a 2% increase at constant currency from the year-earlier quarter’s figure. Operating income stood at $16.4 million, up 4% year over year (6% increase on constant currency basis). This segment reported transactions of 284 million, down 3% year over year.

The Money Transfer Segment’s total revenues increased 18% (18% at constant currency) year over year to $268.4 million, backed by 16% increase in transactions. Adjusted EBITDA amounted to $42.2 million, a 33% improvement (34% increase on constant currency basis) from the prior-year quarter. Operating income for this segment totaled $34.3 million, up 41% year over year (42% increase at constant currency). This segment reported total transactions of 27.8 million, up 16% year over year.

Corporate and other Segment reported an expense of $10.2 million for the quarter under review.

4Q18 Guidance

Euronet expects adjusted earnings per share to be nearly $1.27 for the fourth quarter 2018.

Financial Update

Total assets at third-quarter end were $3.4 billion, up 10.2% from the level at year-end 2017.

Cash and cash equivalents improved nearly 38% to $1.1 billion from the figure at year-end 2017.

The company’s total indebtedness decreased 13.6% to $889 million from Jun 30, 2018 level.

Zacks Rank

Euronet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases From Finance Sector

Among other players from the finance sector having reported third-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s earnings (RLI - Free Report) lagged the same.

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