Euronet Worldwide Inc.
) reported fourth-quarter adjusted earnings of 44 cents per
share, beating the Zacks Consensus Estimate of 42 cents but
lagging the year-ago quarter's earnings of 46 cents. Adjusted
earnings include a one-time tax charge of 3 cents per share
related to the repurchase of the company's convertible bonds.
Adjusted operating earnings were $26.8 million in the reported
quarter, 17% higher than $23.0 million recorded in the fourth
quarter of 2011.
Including foreign exchange gain/loss, intangible asset
amortization, share-based compensation, impairment of goodwill
and acquired intangible assets, non-cash 3.5% convertible debt
accretion interest, change in fair value of acquisition
contingent consideration, loss on early debt retirement, non-cash
GAAP tax expense, other gains and 3.5% convertible debt interest
and amortization of issuance costs, the company reported a net
loss of $13.0 million or 26 cents per share as against an income
of $10.9 million or 21 cents per share in the prior-year
During the quarter under review, total revenue of Euronet
Worldwide grossed $351.2 million, increasing from $319.4 million
in the year-ago quarter. Total revenue surpassed the Zacks
Consensus Estimate of $338 million.
Total operating expenses for the reported quarter amounted to
$353.1 million, increasing from $296.4 million in the prior-year
quarter, primarily due to increases in operating costs, salaries
and benefits, and impairment of goodwill and acquired intangible
Total operating loss amounted to $1.9 million, compared with
operating income of $23 million in the year-ago quarter.
Total transactions for the company climbed 10% to 604 million,
driven by contribution from all segments.
EFT Processing Segment
reported total revenue of $64.8 million, increasing 19% over the
prior-year quarter. Its operating income surged 53% to $13.6
million over the fourth quarter of 2011.
The improved performance came on the back of substantial
growth in its ATMs under management, higher demand for software
products and seasonal increases in sales of value-added services.
This segment recorded total number of transactions of 297 million
against 257 million in the year-ago quarter.
reported total revenue of $199.5 million, increasing 4% over the
prior-year quarter, driven by the strong performance of
non-mobile products in Germany and prepaid mobiles in the U.S.
Operating loss amounted to $13.8 million compared with operating
income of $16.9 million in the year-ago quarter due to weak
results from Brazil, Australia and Spain, partially offset by
improvements in the U.S. and Germany. Total transactions amounted
to 298 million, increasing 4% over the prior-year quarter.
Money Transfer Segment
's total revenue improved 18% over the year-ago quarter to $87.2
million in the quarter under review. Operating income surged 64%
to $7.4 million during the reported quarter. A surge in total
transactions contributed to the expansion of revenue and
operating income. Total transactions increased 28% over the
year-ago quarter to 8.6 million in the fourth quarter of
Corporate and Other
segment reported total expenses of $9.1 million in the reported
quarter, increasing from $7.3 million in the fourth quarter of
2011. The increase was attributable to higher long and short-term
incentive compensation expenses.
Full Year Results
For full-year 2012, Euronet Worldwide's adjusted earnings came
in at $1.57 per share, beating the Zacks Consensus Estimate of
$1.40 as well as the prior-year earnings of $1.48 per share.
Adjusted operating earnings were $86.7 million in 2012, up 10%
compared with $79.0 million recorded in 2011.
Including all non-recurring items, Euronet Worldwide reported
net income of $20.5 million or 40 cents per share, declining from
$36.9 million or 71 cents per share in 2011.
Total revenue for 2012 was $1.27 billion, improving from $1.16
billion in 2011. Total operating expenses for 2012 amounted to
$1.21 billion, increasing from $1.08 billion in 2011.
Euronet Worldwide exited the fourth quarter of 2012 with cash
and cash equivalents of $191.2 million, increasing from $170.7
million as of Dec 31, 2011.
Long-term debt obligation in the company's books amounted to
$286.7 million, increasing from $161.7 million as of Dec 31,
2011. Total assets amounted to $1.55 billion and shareholders
equity amounted to $526.6 million at 2012-end.
With the assumption of a constant foreign currency exchange
rate, the company expects the first-quarter 2013 pre-tax cash
earnings to be around 37 cents per share.
Euronet Worldwide carries a Zacks Rank #2 (Buy). Other strong
performers in the financial sector are
Grupo Financiero Banorte, S.A.B. de C.V.
) - Zacks Rank #1 (Strong Buy) -
CIT Group Inc.
) - Zacks Rank #2 (Buy).
CIT GROUP (CIT): Free Stock Analysis Report
CAPITALSOURCE (CSE): Free Stock Analysis
EURONET WORLDWD (EEFT): Free Stock Analysis
(GBOOY): ETF Research Reports
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