U.S. Markets closed

Euronet (EEFT) Q1 Earnings Surpass Estimates, Improve Y/Y

Zacks Equity Research

Euronet Worldwide, Inc. EEFT delivered first-quarter 2019 earnings of 85 cents per share, beating the Zacks Consensus Estimate by 2.4%. Moreover, the bottom line improved 16.4% year over year.  This upside can mainly be attributed to double-digit contributions from all the segments. 

The company’s reported net income was up 26.5% to 62 cents per share in the quarter under review.

Its total revenues were $577.5 million, up 4.9% from the year-ago quarter owing to solid contributions from EFT Processing Segment and Money Transfer segment. However, the top line missed the Zacks Consensus Estimate by 4.2%.

Euronet’s total transactions were 1.06 million, having increased 17% year over year.

Adjusted operating income rose nearly 23% to $56.1 million.

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise | Euronet Worldwide, Inc. Quote

Segment Results

EFT Processing Segment’s total revenues grew 7% (16% at constant currency basis) year over year to $145.7 million on the back of higher transactions and a rise in operated ATMs. Adjusted EBITDA amounted to $33.4 million, up 21% (29% at constant currency basis) from the year-earlier period. Operating income for the segment was $16.8 million, up 46% year over year (up 54% on constant currency basis).

The epay Segment’s total revenues are flat at $176.1 million (up 6%atconstant currency). Adjusted EBITDA amounted to $19.8 million, up 5% improvement from the year-earlier quarter’s figure (13% up on constant currency basis). Operating income stands at $18 million, up 7% year over year (15% increase on constant currency basis). This segment reported transactions of 338 million, up 31% year over year.

The Money Transfer Segment’s total revenues climbed 7% (11% at constant currency) year over year to $256.6 million, backed by higher transactions. Adjusted EBITDA amounted to $38.8 million, reflecting a 13% rise (18% increase at constant currency) from the prior-year quarter. Operating income for this segment totaled $30.7 million, up 22% on constant currency basis. This segment reported total transactions of 26.6 million, up 10% year over year.

Corporate and other Segment reported an expense of $9.4 million for the quarter under review, same as the year-ago quarter’s number.

Q2 Guidance

Euronet expects adjusted earnings per share to be nearly $1.69 per share in the second quarter of 2019.

Financial Update

Total assets at first-quarter end were $3.8 billion, up 14.8% from the level at year-end 2018.

Cash and cash equivalents improved nearly 15.4% to $1.2billion from the figure at 2018 end.

The company’s total indebtedness increased 22.7% to $786.9 million from the count as of Dec 31, 2018.

Zacks Rank and Performance of Other Players

Euronet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the finance sector having reported first-quarter earnings so far, the bottom-line figures of Oaktree Specialty Lending OCSL, Discover Financial Services DFS and Synchrony Financial SYF surpassed the respective Zacks Consensus Estimates.


Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Discover Financial Services (DFS) : Free Stock Analysis Report
Euronet Worldwide, Inc. (EEFT) : Free Stock Analysis Report
Synchrony Financial (SYF) : Free Stock Analysis Report
Oaktree Specialty Lending Corp. (OCSL) : Free Stock Analysis Report
To read this article on Zacks.com click here.