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Euronet Worldwide, Inc. (EEFT - Free Report) reported third-quarter 2020 earnings of $1.12 per share, beating the Zacks Consensus Estimate by 115.4% on the back of epay and Money Transfer segments. However, the bottom line fell 61% year over year due to reduced revenues.
The company’s net income of 76 cents per share in the third quarter compared unfavorably with the net income of $2.46 in the prior-year quarter.
Total revenues of $664.4 million were down 16% from the year-ago quarter. However, the top line beat the Zacks Consensus Estimate by 8.7%.
Operating income of $66.1 million in the third quarter plunged 66% year over year.
Total operating expenses of $598.3 million were up 0.9% year over year due to higher direct operating costs.
Segmental Results
EFT Processing Segment’s total revenues slumped 54% (down 55% in constant currency) year over year due to lower high-value cross-border transactions in Europe and the Asia Pacific related to the coronavirus pandemic. Adjusted EBITDA of ($27.7) million dropped 84% (down 84% at cc) from the year-ago period. Operating income of $6.2 million tanked 96% year over year.
The epay Segment’s total revenues inched up 4% year over year to $198.9 million (up 3% on constant currency basis) on the back of digital media and mobile growth. Adjusted EBITDA amounted to $24.3 million, increasing 12% from the year-earlier figure (up 11% on constant currency basis). Operating income of $22.2 million improved 10% year over year (up 9% on constant currency basis). Reported transactions were 661 million, up 66% year over year owing to better numbers across Europe and Brazil as well as robust contributions from India.
The Money Transfer Segment’s total revenues increased 15% (up 13% at cc) year over year to $323.1 million. Adjusted EBITDA amounted to $57.8 million, reflecting a 32% increase (30% rise at cc) from the prior-year quarter. Operating income of $47.6 million rose 34% year over year (31% at cc). This segment’s total transactions of 30.9 million were up 5% year over year.
Corporate and Other Segment reported an expense of $9.9 million for the quarter, down 21.4% year over year.
Financial Update
Total assets at the third-quarter end were $4 billion, down 12.1% from the level at 2019 end.
Cash and cash equivalents increased 28.3% to $1 billion from the figure at 2019 end.
Debt obligations, net of current portion, were up 3.9% year over year to $1.1 billion from the level at 2019 end.
Of the other companies in the same space that already reported third-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) and Synchrony Financial (SYF - Free Report) missed the respective Zacks Consensus Estimate while that of Discover Financial Services (DFS - Free Report) beat the same.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
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Euronet (EEFT) Q3 Earnings Surpass Estimates, Decline Y/Y
Euronet Worldwide, Inc. (EEFT - Free Report) reported third-quarter 2020 earnings of $1.12 per share, beating the Zacks Consensus Estimate by 115.4% on the back of epay and Money Transfer segments. However, the bottom line fell 61% year over year due to reduced revenues.
The company’s net income of 76 cents per share in the third quarter compared unfavorably with the net income of $2.46 in the prior-year quarter.
Total revenues of $664.4 million were down 16% from the year-ago quarter.
However, the top line beat the Zacks Consensus Estimate by 8.7%.
Operating income of $66.1 million in the third quarter plunged 66% year over year.
Total operating expenses of $598.3 million were up 0.9% year over year due to higher direct operating costs.
Segmental Results
EFT Processing Segment’s total revenues slumped 54% (down 55% in constant currency) year over year due to lower high-value cross-border transactions in Europe and the Asia Pacific related to the coronavirus pandemic. Adjusted EBITDA of ($27.7) million dropped 84% (down 84% at cc) from the year-ago period. Operating income of $6.2 million tanked 96% year over year.
The epay Segment’s total revenues inched up 4% year over year to $198.9 million (up 3% on constant currency basis) on the back of digital media and mobile growth. Adjusted EBITDA amounted to $24.3 million, increasing 12% from the year-earlier figure (up 11% on constant currency basis). Operating income of $22.2 million improved 10% year over year (up 9% on constant currency basis). Reported transactions were 661 million, up 66% year over year owing to better numbers across Europe and Brazil as well as robust contributions from India.
The Money Transfer Segment’s total revenues increased 15% (up 13% at cc) year over year to $323.1 million. Adjusted EBITDA amounted to $57.8 million, reflecting a 32% increase (30% rise at cc) from the prior-year quarter. Operating income of $47.6 million rose 34% year over year (31% at cc). This segment’s total transactions of 30.9 million were up 5% year over year.
Corporate and Other Segment reported an expense of $9.9 million for the quarter, down 21.4% year over year.
Financial Update
Total assets at the third-quarter end were $4 billion, down 12.1% from the level at 2019 end.
Cash and cash equivalents increased 28.3% to $1 billion from the figure at 2019 end.
Debt obligations, net of current portion, were up 3.9% year over year to $1.1 billion from the level at 2019 end.
Zacks Rank and Performance of Other Players
Euronet currently carries a Zacks Rank #4 (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 third-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) and Synchrony Financial (SYF - Free Report) missed the respective Zacks Consensus Estimate while that of Discover Financial Services (DFS - Free Report) beat the same.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>