Euronet Worldwide Inc.
) reported third-quarter operating net income of 51 cents per
share, beating the Zacks Consensus Estimate of 48 cents by 6.3%.
Results also surpassed the year-ago operating net income of 38
cents per share by 31.6%.
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Net income of Euronet came in at $47.9 million or 92 cents per
share, improving considerably from $14.6 million or 28 cents per
share in the prior-year quarter.
The improvement came largely on the back of value-added products
and balanced growth in both the U.S. and international markets
through continuous network expansion.
Total revenues of Euronet in the reported quarter grossed $360.6
million, surpassing the Zacks Consensus Estimate of $353 million
by 2.1%. An improvement of 14% year over year was driven by
higher revenues across all the segments.
Total operating expenses of Euronet for the third quarter
amounted to $305.3 million, increasing 4.5% year over year. The
rise was primarily due to higher operating costs (up 11.7% year
over year), salaries and benefits (up 16% year over year) and
selling, general and administrative expenses (up 10.7% year over
Adjusted operating income for Euronet was $36 million, soaring
49% from $24.2 million in the prior-year period.
Total transactions for Euronet declined 1% year over year to $582
million in the reported quarter.
EFT Processing Segment
reported total revenues of $83.6 million, increasing 29% from the
prior-year quarter. Adjusted operating income also surged 74%
year over year.
The improved performance resulted from growth in sales of
value-added products, improved performance from brown label ATMs
in India and ATM network expansion.
Total transactions in the segment were $304 million, flat year
over year. Higher contribution from the segment's operations in
Serbia, India, Greece, China, Pakistan, Romania and Poland were
offset by termination of the previously announced contract with
IDBI Bank in India.
reported total revenues of $182.6 million, increasing 6% from the
prior-year quarter. Operating income amounted to $12.1 million in
the third quarter, up 20% year over year.
The improvement was owing to higher non-mobile product sales,
mainly in Germany, higher prepaid mobile sales in the U.S. and
the acquisition of ezi-pay in New Zealand in Nov 2012. The upside
was limited by soft performances in Middle-East and Australia and
start-up expenses in Russia and Turkey. The segment's operating
income improvement also stemmed from gains from lower intangible
Total transactions during the reported quarter declined 3% year
over year to $269 million.
Money Transfer Segment
's total revenues improved 19% year over year to $95.3 million in
the quarter under review. Operating income surged 21% year over
year to $7.5 million in the third quarter of 2013.
A surge in total transactions contributed to the expansion of
revenue and operating income. Total transactions increased 11%
over the year-ago quarter to 8.9 million. Growth in transactions
came from consistent sales success and substantial network
Corporate and Other Segment
reported total expenses of $8.9 million, increasing 34.8% from
the prior-year quarter. The increase was primarily due to short-
and long-term incentive compensation expenses.
Euronet's strong cash balance is reflective of its cash and cash
equivalents of $244.5 million as of Sep 30, 2013, which surged
27.5% year over year.
Total assets of Euronet as of Sep 30, 2013 were $1.51 billion, up
2.9% compared with $1.47 billion at the end of Sep 30, 2012.
Long-term debt obligation of Euronet amounted to $235.3 million
at the end of the reported quarter, increasing from $78.6 million
as of Sep 30, 2012. Shareholders equity totaled $613.5 million
improving 7.9% from the period ended Sep 30, 2012.
Debt to capital ratio of Euronet as of Sep 30, 2013 was 28.7%,
representing an improvement of 260 basis points over 31.3%
reported at the end of the prior-year quarter.
Euronet currently expects fourth-quarter adjusted cash earnings
of 57 cents per share with the assumption of constant foreign
currency exchange rates.
Euronet presently carries a Zacks Rank #3 (Hold). Among others in
American Express Company
), with a Zacks Rank #2 (Buy) reported its third quarter net
earnings per share of $1.25, surpassing the Zacks Consensus
Estimate by 2.4%.
FleetCor Technologies Inc.
Portfolio Recovery Associates Inc.
), each with a Zacks Rank #2 are expected to report their results