Euronet Worldwide Inc.
) recently announced the purchase of Australia based Pure
EURONET WORLDWD (EEFT): Free Stock Analysis
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The deal entails Euronet to have Pure Commerce's portfolio of
services and make them available to the global, local and online
merchant acquirers, banks and retailers and helps Euronet to
penetrate into more markets. It is expected to increase Euronet's
annual cash earnings per share by 3 cents to 4 cents in 2013. The
Zacks Consensus Estimate for full year 2013 is currently pegged
at $1.64, reflecting a 17.5% year over year improvement.
Pure Commerce is a provider of an array of services consisting of
currency conversion payment and multi-currency acquiring services
for point-of-sale terminals, online applications and ATMs in high
foreign card volume locations. It mainly caters to leading
international banks, acquirers and global merchants worldwide,
with more focus in Asia Pacific and Europe.
Similar to Euronet, Pure Commerce is quite popular with consumers
as it provides user friendly solutions. Thus being part of the
Euronet team, Pure Commerce is expected to enhance the acquirer's
value added payment solutions profile. Euronet expects the
acquisition to consolidate its Asia Pacific operations besides
offering its customers with better revenue sources through Pure
Commerce's products and services.
There has been no earnings momentum in the last seven days. We
expect the estimates to move north over the optimism of the
In order to expand its operations, Euronet engages in a number of
merger and acquisition activities. Recently, Euronet's ePay
division also entered into partnership with Europe's leading
provider of merchant accounts, World Pay to help retailers earn
excellent commission rates through improved card payment options.
The company expects adjusted EPS for the fourth quarter of 2012
to be 47 cents, which is above the current Zacks Consensus
Estimate of 42 cents and reflects a year-over-year improvement of
42%. That of full year 2012 is pegged at $1.40, reflecting
a 10.0% improvement year-over-year.
Euronet currently holds a Zacks Rank #1 (Strong Buy). Companies
Moneygram International New
Western Union Co.
) closely compete with Euronet. Western union carries a Zacks
Rank #4 (Sell) while Moneygram carries a Zacks Rank # 3