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Here's Why You Should Retain Euronet (EEFT) in Your Portfolio
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Euronet Worldwide, Inc. (EEFT - Free Report) is currently aided by strong segmental contribution, an enhanced payment solutions suite, acquisitions, and solid cash generation capabilities.
Zacks Rank & Price Rally
Euronet currently carries a Zacks Rank #3 (Hold).
The stock has gained 0.6% in the year-to-date period against the industry’s 0.6% decline.
Image Source: Zacks Investment Research
Favorable Style Score
EEFT is well-poised for progress, as evidenced by its impressive VGM Score of A. Here, V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of all three factors.
Favorable Growth Prospects
The Zacks Consensus Estimate for Euronet’s 2024 earnings is pegged at $8.64 per share, indicating a 15.8% increase from the year-ago reported figure. The consensus mark for revenues is pegged at $4 billion, implying 7.6% growth from the year-ago number.
The Zacks Consensus Estimate for 2025 earnings is pegged at $9.70 per share, suggesting 12.2% growth from the 2024 estimate. The consensus mark for revenues is pegged at $4.4 billion, which indicates a rise of 9.7% from the 2024 estimate.
Earnings Surprise History
The bottom line of EEFT outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.
Solid Return on Equity
Euronet’s efficiency in utilizing shareholders’ funds can be substantiated by its return on equity of 30.4% as of Mar 31, 2024, which remains higher than the industry’s average of 20.3%.
Key Drivers
The top line of Euronet gains on the back of strong contributions from the EFT Processing, epay, and Money Transfer segments. It improved 9% year over year in the first quarter of 2024. The Zacks Consensus Estimate for revenues implies year-over-year growth of 7.6% in 2024. Management anticipates adjusted earnings per share to witness 10-15% year-over-year growth in 2024. The consensus estimate for earnings implies year-over-year growth of 15.8% in 2024.
The EFT Processing segment is supported by its growing domestic and international cash withdrawal transactions, strong Ren technology platform, expanding Merchant Services business, geographical expansion of ATMs in new countries, and continued optimization of the ATM network. Positive travel data is expected to fuel growth in this segment in the coming days. The company is on track to deploy 3,000 to 5,000 new ATMs in 2024. This segment processed total transactions of 2.5 million in the first quarter of 2024, which climbed 36% year over year.
The company believes there are many opportunities to expand in existing and new markets, posing this segment well for growth. EEFT expects to achieve $20 million in cost savings in 2024 leading to margin improvement in the remainder of the year.
Consistent expansion of digital branded payments and mobile growth aids the performance of the epay segment, while higher cross-border transactions, direct-to-consumer digital transactions and international-originated money transfers drive the Money Transfer segment’s performance.
Euronet often resorts to acquisitions, which contribute to the growth of its business in the form of developing new products and services as well as expanding its geographical presence. The widespread adoption of contactless payments provides EEFT an opportunity to capitalize on through its innovative payment solutions. The company’s acquisition of Infinitum Holdings in Singapore in the first quarter of 2024 is expected to expand Ren’s reach.
An enhanced payment, transaction processing and distribution solutions suite make it a favorite choice for partnerships with financial service providers, agents, retailers, merchants, content providers and individual consumers. In this regard, EEFT’s REN platform delivers an array of services comprising payment processing, card issuing, loyalty services, inventory management, fraud management and many more.
A sound cash balance and solid cash-generating abilities bear testament to EEFT’s financial strength, based on which it can undertake business investments. It generated operating cash flows of $670 million in the first quarter of 2024, which improved 4.2% year over year from the prior-year comparable period.
StepStone’s earnings surpassed estimates in three of the last four quarters and missed once, the average surprise being 15.7%.
The Zacks Consensus Estimate for STEP’s 2024 and 2025 revenues implies year-over-year growth of 40.5% and 22%, respectively.
NewtekOne has a solid track record of beating earnings estimates in two of the trailing four quarters, meeting once and missing once, the average being 18.8%.
The Zacks Consensus Estimate for NEWT’s 2024 and 2025 revenues implies year-over-year growth of 12.9% and 10.3%, respectively.
WisdomTree’s earnings surpassed estimates in one of the last four quarters and matched in the other three, the average surprise being 2.3%.
The Zacks Consensus Estimate for WT’s 2024 and 2025 revenues implies year-over-year growth of 51.4% and 9.5%, respectively.
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Here's Why You Should Retain Euronet (EEFT) in Your Portfolio
Euronet Worldwide, Inc. (EEFT - Free Report) is currently aided by strong segmental contribution, an enhanced payment solutions suite, acquisitions, and solid cash generation capabilities.
Zacks Rank & Price Rally
Euronet currently carries a Zacks Rank #3 (Hold).
The stock has gained 0.6% in the year-to-date period against the industry’s 0.6% decline.
Image Source: Zacks Investment Research
Favorable Style Score
EEFT is well-poised for progress, as evidenced by its impressive VGM Score of A. Here, V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of all three factors.
Favorable Growth Prospects
The Zacks Consensus Estimate for Euronet’s 2024 earnings is pegged at $8.64 per share, indicating a 15.8% increase from the year-ago reported figure. The consensus mark for revenues is pegged at $4 billion, implying 7.6% growth from the year-ago number.
The Zacks Consensus Estimate for 2025 earnings is pegged at $9.70 per share, suggesting 12.2% growth from the 2024 estimate. The consensus mark for revenues is pegged at $4.4 billion, which indicates a rise of 9.7% from the 2024 estimate.
Earnings Surprise History
The bottom line of EEFT outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.
Solid Return on Equity
Euronet’s efficiency in utilizing shareholders’ funds can be substantiated by its return on equity of 30.4% as of Mar 31, 2024, which remains higher than the industry’s average of 20.3%.
Key Drivers
The top line of Euronet gains on the back of strong contributions from the EFT Processing, epay, and Money Transfer segments. It improved 9% year over year in the first quarter of 2024. The Zacks Consensus Estimate for revenues implies year-over-year growth of 7.6% in 2024. Management anticipates adjusted earnings per share to witness 10-15% year-over-year growth in 2024. The consensus estimate for earnings implies year-over-year growth of 15.8% in 2024.
The EFT Processing segment is supported by its growing domestic and international cash withdrawal transactions, strong Ren technology platform, expanding Merchant Services business, geographical expansion of ATMs in new countries, and continued optimization of the ATM network. Positive travel data is expected to fuel growth in this segment in the coming days. The company is on track to deploy 3,000 to 5,000 new ATMs in 2024. This segment processed total transactions of 2.5 million in the first quarter of 2024, which climbed 36% year over year.
The company believes there are many opportunities to expand in existing and new markets, posing this segment well for growth. EEFT expects to achieve $20 million in cost savings in 2024 leading to margin improvement in the remainder of the year.
Consistent expansion of digital branded payments and mobile growth aids the performance of the epay segment, while higher cross-border transactions, direct-to-consumer digital transactions and international-originated money transfers drive the Money Transfer segment’s performance.
Euronet often resorts to acquisitions, which contribute to the growth of its business in the form of developing new products and services as well as expanding its geographical presence. The widespread adoption of contactless payments provides EEFT an opportunity to capitalize on through its innovative payment solutions. The company’s acquisition of Infinitum Holdings in Singapore in the first quarter of 2024 is expected to expand Ren’s reach.
An enhanced payment, transaction processing and distribution solutions suite make it a favorite choice for partnerships with financial service providers, agents, retailers, merchants, content providers and individual consumers. In this regard, EEFT’s REN platform delivers an array of services comprising payment processing, card issuing, loyalty services, inventory management, fraud management and many more.
A sound cash balance and solid cash-generating abilities bear testament to EEFT’s financial strength, based on which it can undertake business investments. It generated operating cash flows of $670 million in the first quarter of 2024, which improved 4.2% year over year from the prior-year comparable period.
Stocks to Consider
Some better-ranked stocks from the Financial-Miscellaneous Services space are StepStone Group Inc. (STEP - Free Report) , NewtekOne, Inc. (NEWT - Free Report) and WisdomTree, Inc. (WT - Free Report) . While StepStone and NewtekOne sport a Zacks Rank #1 (Strong Buy), WisdomTree currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
StepStone’s earnings surpassed estimates in three of the last four quarters and missed once, the average surprise being 15.7%.
The Zacks Consensus Estimate for STEP’s 2024 and 2025 revenues implies year-over-year growth of 40.5% and 22%, respectively.
NewtekOne has a solid track record of beating earnings estimates in two of the trailing four quarters, meeting once and missing once, the average being 18.8%.
The Zacks Consensus Estimate for NEWT’s 2024 and 2025 revenues implies year-over-year growth of 12.9% and 10.3%, respectively.
WisdomTree’s earnings surpassed estimates in one of the last four quarters and matched in the other three, the average surprise being 2.3%.
The Zacks Consensus Estimate for WT’s 2024 and 2025 revenues implies year-over-year growth of 51.4% and 9.5%, respectively.