Euronet Worldwide Inc (EEFT) Reports Strong Q3 2023 Financial Results
Euronet Worldwide Inc (NASDAQ:EEFT) reports Q3 2023 revenues of $1,004.0 million, an 8% increase from $931.3 million in Q3 2022.
The company made a substantial share repurchase, offsetting the benefit to adjusted EPS due to weakening foreign currencies versus the US dollar.
Money Transfer segment produced strong Q3 results across all financial metrics, with margin expansion from continued growth in both physical and digital transactions.
The company anticipates its Q4 2023 adjusted EPS to be $1.75 and its 2024 adjusted EPS to grow 10-15% year-over-year.
On October 20, 2023, Euronet Worldwide Inc (NASDAQ:EEFT), a leading global financial technology solutions and payments provider, announced its third quarter 2023 financial results. The company reported consolidated revenues of $1,004.0 million, marking an 8% increase from $931.3 million in the same period of 2022. This is the first time the company has achieved a one billion dollar revenue quarter.
Performance Highlights
Michael J. Brown, Euronet's Chairman and CEO, stated,
I am pleased that we were able to deliver our first one billion dollar revenue quarter. This third quarter is a great reminder of how our product and geographical diversity provides consistency in our earnings despite the geopolitical and economic challenges across the world."
He also mentioned the company's substantial share repurchase, which largely offset the benefit to adjusted EPS due to the weakening of foreign currencies versus the US dollar.
Segment Results
The EFT Processing Segment reported revenues of $345.8 million, an 8% increase from $319.5 million in Q3 2022. The epay Segment reported revenues of $264.5 million, a 6% increase from $248.9 million in the same period of 2022. The Money Transfer Segment reported revenues of $395.9 million, an 8% increase from $364.9 million in Q3 2022.
Financial Position
As of September 30, 2023, the company had unrestricted cash and cash equivalents of $1,074.4 million, compared to $1,137.5 million as of June 30, 2023. The decrease in unrestricted cash and cash equivalents is mainly due to approximately $300 million in share repurchases and working capital fluctuations, partially offset by cash generated from operations of $146 million and $173 ATM cash returned as the peak tourist season winds down. Total indebtedness was $1,717.3 million as of September 30, 2023, compared to $1,760.8 million as of June 30, 2023.
Outlook
Taking into consideration recent trends in the business and the global economy, and historical seasonal patterns, Euronet Worldwide Inc (NASDAQ:EEFT) anticipates that its fourth quarter 2023 adjusted EPS will be $1.75. Moreover, the company anticipates its 2024 adjusted EPS will grow 10-15% year-over-year, consistent with its 10 and 20 year compounded annualized growth rates.
This article first appeared on GuruFocus.
