On Mar 13, Zacks Investment Research upgraded
Euronet Worldwide Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Euronet Worldwide has been witnessing a boost in its estimates
following strong fourth-quarter results and inorganic growth
through acquisitions and alliances. Moreover, this well-known
electronic payment provider delivered positive earnings surprises
in 3 of the last 4 quarters with an average beat of 0.8%. The
long-term expected earnings growth rate for this stock is
On Feb 12, Euronet Worldwide reported fourth-quarter operating
earnings of 44 cents per share, which surpassed the Zacks
Consensus Estimate of 42 cents. Earnings were primarily aided by
10% growth in total revenue along with a 10% rise in total
transactions, contributed by all segments.
Additionally, substantial growth in ATMs under management and
higher demand for software products generated growth. Even the
non-mobile products in Germany and prepaid mobiles in the U.S.
While higher expenses and debt are the near-term limitations,
Euronet Worldwide's balance sheet remains fairly liquid, also
reflected by the investment grade rating received from S&P.
The acquisition of Pure Commerce is expected to be accretive to
earnings by 3-4 cents per share in 2013.
Based on the currency fluctuations and seasonal factors,
Euronet Worldwide projects the first-quarter 2013 pre-tax cash
earnings to be around 37 cents per share.
Subsequently, the Zacks Consensus Estimate for the
first-quarter 2013 is pegged at 31 cents per share, while no
estimate revisions were experienced in the last 30 days. The
estimate for full-year 2013 rose 1.8% to $1.68 a share in the
last 30 days, witnessing one upward revision but no downward
Other Stocks to Consider
Apart from Euronet Worldwide, other stocks that are
outperforming in the financial sector include
CNO Financial Group Inc.
XL Group Plc
). All these stocks carry a Zacks Rank #1 (Strong Buy).
CNO FINL GRP (CNO): Free Stock Analysis
EURONET WORLDWD (EEFT): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
XL GROUP PLC (XL): Free Stock Analysis Report
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