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Earnings Review and Free Research Report: Euronet’s Revenue Surged 22%; EPS Soared 62%

Research Desk Line-up: S&P Global Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Euronet Worldwide, Inc. (NASDAQ: EEFT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=EEFT, following the Company's release of its third quarter fiscal 2017 operating results on October 19, 2017. The leading electronic payments provider outperformed top- and bottom-line expectations and also provided adjusted EPS guidance for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the quarter ended September 30, 2017, Euronet reported revenues of $637.8 million, up 22% compared to revenue of $524.0 million in Q3 2016. The Company's revenue numbers topped analysts' expectations of $594.4 million.

For Q3 2017, Euronet's operating income surged 29% to $116.9 million compared to $90.5 million in Q3 2016. The Company recorded adjusted operating income of $117.0 million, up 29% versus $90.5 million in the year-ago same period. Euronet posted adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $145.4 million for Q3 2017, reflecting a 27% increase from $114.1 million in Q3 2016.

For Q3 2017, net income attributable to Euronet totaled $100.3 million, or $1.80 diluted per share, compared with net income of $60.7 million, or $1.11 per diluted share, in Q3 2016. The Company posted adjusted earnings per share $1.61, a 19% increase from $1.35. Euronet's earnings beat Wall Street's estimates of $1.60 per share.

Segment Results

During Q3 2017, Euronet's EFT Processing segment recorded revenues of $226.3 million, up 48% increase from $152.6 million in Q3 2016. The segment posted operating income of $86.8 million, a 46% increase from $59.4 million in the prior year's same quarter. The EFT segment's adjusted EBITDA surged 46% to $101.6 million versus $69.6 million in the year earlier same quarter. The segment recorded transactions of 614 million, up 26% increase from 488 million in Q3 2016.

The division operated 38,105 ATMs as of September 30, 2017, a 30% increase from 29,276 in the year-ago comparable period. The segment's revenue, operating income, and adjusted EBITDA growth was largely the result of a 30% y-o-y growth in ATMs and a 26% increase in transactions, primarily from Europe and India - including an increase in the number of value added transactions on both ATMs and point-of-sale ("POS") terminals. The y-o-y change in ATM count was attributed to the deployment of approximately 3,300 high-value ATMs in Europe and India, the addition of approximately 850 ATMs under its low-margin agreements in India, and approximately 4,900 ATMs from the acquisition of YourCash.

For Q3 2017, Euronet's epay segments' revenue grew 10% to 184.2 million from $167.2 million in Q3 2016. The segment posted operating income of $15.7 million, a 6% increase from $14.8 million in the prior year's corresponding quarter, while adjusted EBITDA grew 4% to $18.2 million from $17.5 million in Q3 2016. The epay segment reported transactions of 293 million, a 7% decrease from 314 million and POS terminals of approximately 673,000 as of September 30, 2017, a 4% increase from approximately 647,000. The segment also had retailer locations of approximately 306,000 as of September 30, 2017, a 1% increase y-o-y from approximately 304,000.

During Q3 2017, epay constant currency revenue growth was primarily the result of increased sales of non-mobile products, partially offset by certain mobile transaction declines. The 7% transaction decline was largely the result of the loss of a high-volume, low-margin customer in the Middle-East.

For Q3 2017, Euronet's Money Transfer segment generated revenues of $228.1 million, an 11% increase from $204.6 million in Q3 2016. The double-digit constant currency revenue increase was driven by growth across most sectors of the Ria and HiFX businesses coupled with the conversion of the XE international payments business to the HiFX platform. The division posted operating income of $24.3 million, down 4% from $25.2 million in the year-ago same period, and adjusted EBITDA of $31.7 million, a 2% decrease from $32.4 million.

For the reported quarter, the Money Transfer segment's transactions totaled 23.9 million, a 12% increase from 21.3 million. The segment had Network locations of approximately 332,000 as of September 30, 2017, a 6% increase from approximately 314,000. In Q3 2017, money transfers grew 13% and non-transfer transactions, such as currency exchange and check cashing, grew 4%, resulting in total transaction growth of 12%.

Balance Sheet and Financial Position

Euronet's unrestricted cash on hand was $1.062 billion as of September 30, 2017, compared to $1.065 billion as of June 30, 2017. The Company's total indebtedness was $744.0 million as of September 30, 2017, compared to $869.4 million as of June 30, 2017. Debt decreased as a result of revolver repayments due to lower seasonal ATM cash requirements.

Guidance

For Q4 2017, Euronet is forecasting adjusted earnings per share to be approximately $1.12, assuming foreign currency exchange rates remain stable through the end of the quarter.

Stock Performance

On Friday, October 27, 2017, the stock closed the trading session at $98.28, slightly rising 0.10% from its previous closing price of $98.18. A total volume of 241.25 thousand shares have exchanged hands. Euronet Worldwide's stock price surged 1.73% in the last one month, 17.00% in the past six months, and 22.85% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 35.69%. The stock is trading at a PE ratio of 25.90 and currently, has a market cap of $5.16 billion.

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