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Euronet's (EEFT) Q2 Earnings, Revenues In Line With Estimates

Zacks Equity Research

Euronet Worldwide, Inc. EEFT 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.

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise

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

Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote

Segmental Update

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.

Zacks Rank

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

Other Releases From Finance Sector

Among other players from the finance sector having reported second-quarter earnings so far, the bottom-line numbers of Synchrony Financial SYF, RenaissanceRe Holdings Ltd. RNR and Discover Financial Services DFS outpaced the respective Zacks Consensus Estimate.

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