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Why Is Euronet Worldwide (EEFT) Down 2.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Euronet Worldwide (EEFT - Free Report) . Shares have lost about 2.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Euronet Worldwide due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Euronet’s Q2 Earnings, Revenues In Line With Estimates
Euronet delivered second-quarter 2019 earnings of $1.69 per share, in line with the Zacks Consensus Estimate. Meanwhile, the bottom line improved 28% year over year. This upside can mainly be attributed to higher revenue contribution by all segments.
The company’s reported net income soared 52.4% to $1.25 earnings per share in the quarter under review.
Its total revenues were $691.9 million, up 11% from the year-ago quarter. Meanwhile, the top line came matched the Zacks Consensus Estimate.
Euronet’s total transactions were 1.15 million, having increased 19% year over year.
Adjusted operating income rose nearly 29% to $116.6 million.
Segmental Results
EFT Processing Segment’s total revenues grew 19% (26% in constant currency) year over year to $231.9 million on the back of higher transactions and a rise in operated ATMs. Adjusted EBITDA amounted to $93 million, up 34% (42% at cc) from the year-ago period. Operating income for the segment was $76.5 million, up 45% year over year (up 53% on constant currency basis).
The epay Segment’s total revenues increased 11% year over year to $184.2 million (16% up on constant currency basis). Adjusted EBITDA amounted to $19.4 million, up 7% improvement from the year-earlier figure (12% up on constant currency basis). Operating income stands at $17.6 million, up 8% year over year (13% on constant currency basis). This segment reported transactions of 369 million, up 40% year over year.
The Money Transfer Segment’s total revenues climbed 6% (9% at cc) year over year to $276.8 million, backed by 7% higher transactions. Adjusted EBITDA amounted to $43.4 million, reflecting a 7% improvement (11% increase at cc) from the prior-year quarter. Operating income for this segment totaled $35.3 million, up 12% in constant currency. This segment reported total transactions of 28.9 million, up 7% year over year.
Corporate and other Segment reported an expense of $11.5 million for the reported quarter, flat with the 2018 second-quarter figure.
Q3 Guidance
Euronet expects adjusted earnings per share for the third quarter to be nearly $2.80 (assuming forex to be stable), better than the Zacks Consensus Estimate of $2.79.
Financial Update
Total assets at second-quarter end were $4.3 billion, up 30.5% from the level at year-end 2018.
Cash and cash equivalents improved nearly 47.8% to $1.6 billion from the figure at 2018 end.
The company’s total indebtedness surged 86% to $1096.7 million from the count as of 2018-end level.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Euronet Worldwide has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Euronet Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Euronet Worldwide (EEFT) Down 2.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Euronet Worldwide (EEFT - Free Report) . Shares have lost about 2.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Euronet Worldwide due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Euronet’s Q2 Earnings, Revenues In Line With Estimates
Euronet delivered second-quarter 2019 earnings of $1.69 per share, in line with the Zacks Consensus Estimate. Meanwhile, the bottom line improved 28% year over year. This upside can mainly be attributed to higher revenue contribution by all segments.
The company’s reported net income soared 52.4% to $1.25 earnings per share in the quarter under review.
Its total revenues were $691.9 million, up 11% from the year-ago quarter. Meanwhile, the top line came matched the Zacks Consensus Estimate.
Euronet’s total transactions were 1.15 million, having increased 19% year over year.
Adjusted operating income rose nearly 29% to $116.6 million.
Segmental Results
EFT Processing Segment’s total revenues grew 19% (26% in constant currency) year over year to $231.9 million on the back of higher transactions and a rise in operated ATMs. Adjusted EBITDA amounted to $93 million, up 34% (42% at cc) from the year-ago period. Operating income for the segment was $76.5 million, up 45% year over year (up 53% on constant currency basis).
The epay Segment’s total revenues increased 11% year over year to $184.2 million (16% up on constant currency basis). Adjusted EBITDA amounted to $19.4 million, up 7% improvement from the year-earlier figure (12% up on constant currency basis). Operating income stands at $17.6 million, up 8% year over year (13% on constant currency basis). This segment reported transactions of 369 million, up 40% year over year.
The Money Transfer Segment’s total revenues climbed 6% (9% at cc) year over year to $276.8 million, backed by 7% higher transactions. Adjusted EBITDA amounted to $43.4 million, reflecting a 7% improvement (11% increase at cc) from the prior-year quarter. Operating income for this segment totaled $35.3 million, up 12% in constant currency. This segment reported total transactions of 28.9 million, up 7% year over year.
Corporate and other Segment reported an expense of $11.5 million for the reported quarter, flat with the 2018 second-quarter figure.
Q3 Guidance
Euronet expects adjusted earnings per share for the third quarter to be nearly $2.80 (assuming forex to be stable), better than the Zacks Consensus Estimate of $2.79.
Financial Update
Total assets at second-quarter end were $4.3 billion, up 30.5% from the level at year-end 2018.
Cash and cash equivalents improved nearly 47.8% to $1.6 billion from the figure at 2018 end.
The company’s total indebtedness surged 86% to $1096.7 million from the count as of 2018-end level.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Euronet Worldwide has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Euronet Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.