Euronet Worldwide, Inc. (NASDAQ:EEFT) Analysts Are Pretty Bullish On The Stock After Recent Results
Euronet Worldwide, Inc. (NASDAQ:EEFT) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of US$3.7b and statutory earnings per share of US$5.50. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Euronet Worldwide
After the latest results, the nine analysts covering Euronet Worldwide are now predicting revenues of US$3.98b in 2024. If met, this would reflect a reasonable 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to US$6.70. In the lead-up to this report, the analysts had been modelling revenues of US$3.97b and earnings per share (EPS) of US$6.56 in 2024. So the consensus seems to have become somewhat more optimistic on Euronet Worldwide's earnings potential following these results.
The consensus price target rose 8.1% to US$117, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Euronet Worldwide, with the most bullish analyst valuing it at US$130 and the most bearish at US$105 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.8% growth on an annualised basis. That is in line with its 7.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.7% per year. So although Euronet Worldwide is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Euronet Worldwide following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Euronet Worldwide analysts - going out to 2025, and you can see them free on our platform here.
It might also be worth considering whether Euronet Worldwide's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
