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Euronet's (EEFT) Q1 Earnings Miss Estimates, Tumble Y/Y
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Euronet Worldwide, Inc. (EEFT - Free Report) reported first-quarter 2020 earnings of 55 cents per share, missing the Zacks Consensus Estimate by 26.7%. Also, the bottom line fell 35.3% year over year due to the coronavirus outbreak affecting its business.
The company witnessed transaction declines in the first quarter due to the COVID-19 pandemic along with lower operating income.
The company’s net income plunged 93.5% to 4 cents per share in the quarter under review.
Total revenues were $583.9 million, up 1% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate by 1.7%.
Operating income fell nearly 44% to $31.6 million in the first quarter.
Total operating expenses of $552.3 million were up 5.9% year over year.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
EFT Processing Segment’s total revenues inched up 0.1% (3% in constant currency) year over year on the back of higher transactions. Adjusted EBITDA of $25.2 million dropped 25% (down 23% at cc) from the year-ago period. Operating income of $4.9 million slumped 71% year over year (down 71% on constant currency basis) due to fewer European ATM transactions.
The epay Segment’s total revenues slipped 2% year over year to $172.9 million (1% up on constant currency basis). Adjusted EBITDA amounted to $18.3 million, decreasing 8% from the year-earlier figure (down 5% on constant currency basis). Operating income of $16.5 million deteriorated 8% year over year (down 6% on constant currency basis) due to SG & A investments made throughout 2019. Reported transactions were 447 million, up 32% year over year. This segmental growth was driven by improved numbers across Europe and very solid contributions from India.
The Money Transfer Segment’s total revenues climbed 4% (5% at cc) year over year to $266.3 million, backed by 3% higher transactions. Adjusted EBITDA amounted to $30.9 million, reflecting a 20% decline (18% decrease at cc) from the prior-year quarter. Operating income totaled $22.3 million, down 25% in constant currency. This segment reported total transactions of 27.4 million, up 3% year over year.
Corporate and Other Segment reported an expense of $12.1 million for the quarter, up 28.7% year over year.
Financial Update
Total assets at first-quarter end were $4.2 billion, down 10.2% from the level at 2019 end.
Cash and cash equivalents plunged 9.62% to $709.5 million from the figure at 2019 end.
Debt obligations, net of current portion, dipped 0.7% year over year to $1.08 billion from the level at 2019 end.
Of the other companies in the same space that already reported first-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) and Mastercard Incorporated (MA - Free Report) beat the Zacks Consensus Estimate while that of Synchrony Financial (SYF - Free Report) missed the same
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Euronet's (EEFT) Q1 Earnings Miss Estimates, Tumble Y/Y
Euronet Worldwide, Inc. (EEFT - Free Report) reported first-quarter 2020 earnings of 55 cents per share, missing the Zacks Consensus Estimate by 26.7%. Also, the bottom line fell 35.3% year over year due to the coronavirus outbreak affecting its business.
The company witnessed transaction declines in the first quarter due to the COVID-19 pandemic along with lower operating income.
The company’s net income plunged 93.5% to 4 cents per share in the quarter under review.
Total revenues were $583.9 million, up 1% from the year-ago quarter.
However, the top line missed the Zacks Consensus Estimate by 1.7%.
Operating income fell nearly 44% to $31.6 million in the first quarter.
Total operating expenses of $552.3 million were up 5.9% year over year.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote
Segmental Results
EFT Processing Segment’s total revenues inched up 0.1% (3% in constant currency) year over year on the back of higher transactions. Adjusted EBITDA of $25.2 million dropped 25% (down 23% at cc) from the year-ago period. Operating income of $4.9 million slumped 71% year over year (down 71% on constant currency basis) due to fewer European ATM transactions.
The epay Segment’s total revenues slipped 2% year over year to $172.9 million (1% up on constant currency basis). Adjusted EBITDA amounted to $18.3 million, decreasing 8% from the year-earlier figure (down 5% on constant currency basis). Operating income of $16.5 million deteriorated 8% year over year (down 6% on constant currency basis) due to SG & A investments made throughout 2019. Reported transactions were 447 million, up 32% year over year. This segmental growth was driven by improved numbers across Europe and very solid contributions from India.
The Money Transfer Segment’s total revenues climbed 4% (5% at cc) year over year to $266.3 million, backed by 3% higher transactions. Adjusted EBITDA amounted to $30.9 million, reflecting a 20% decline (18% decrease at cc) from the prior-year quarter. Operating income totaled $22.3 million, down 25% in constant currency. This segment reported total transactions of 27.4 million, up 3% year over year.
Corporate and Other Segment reported an expense of $12.1 million for the quarter, up 28.7% year over year.
Financial Update
Total assets at first-quarter end were $4.2 billion, down 10.2% from the level at 2019 end.
Cash and cash equivalents plunged 9.62% to $709.5 million from the figure at 2019 end.
Debt obligations, net of current portion, dipped 0.7% year over year to $1.08 billion from the level at 2019 end.
Zacks Rank and Performance of Other Players
Euronet carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the other companies in the same space that already reported first-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) and Mastercard Incorporated (MA - Free Report) beat the Zacks Consensus Estimate while that of Synchrony Financial (SYF - Free Report) missed the same
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>