Euronet Worldwide Inc.
) hit an all-time new 52-week high of $53.60 on Aug 18, riding on a
strong growth momentum. Notably, this leading electronic payment
provider's shares have risen 11.9% since the company reported
second-quarter results at the end of July.
Euronet Worldwide also maintained its earnings streak in all the
past 4 quarters, with an average beat of 11.3%. The momentum of
this Zacks Rank #2 (Buy) stock has been driven by the company's
organic growth initiatives, adequate liquidity and competitiveness
over other larger players.
Yesterday's closing price represented a robust one-year return
of about 44.9% against a return of 25.1% clocked by the Nasdaq
index. Average volume of shares traded over the last three months
stands at approximately 284.9K.
On Jul 29, Euronet Worldwide reported second-quarter 2014
earnings per share (EPS) of 58 cents, higher than the Zacks
Consensus Estimate of 50 cents and the year-ago quarter figure of
44 cents. This also marked the 6
straight quarter of solid double-digit growth.
High single-digit transactions growth and strong double-digit
revenue growth in EFT processing and money transfer segments drove
the top line, EBITDA, margins and operating cash flow. These were
partly offset by a rise in expenses and debt, primarily owing to
acquisition of the UK-based HiFX in May 2014.
Euronet Worldwide's is gaining strong synergies from consistent
ATM network expansion and strong demand for value-added competitive
digital products. The company is also increasing focus to bolster
the sales of non-mobile content and sustained sales of
Moroever, Euronet Worldwide is boosting its organic growth
capacities through its Walmart (
) alliance and HiFX acquisition. This acquisition has expanded the
company's international money transfer offerings to high-income
individuals and small-to-medium sized businesses. It also fits in
with Euronet Worldwide's existing Ria operations.
The company's growth prospects has boosted investors' sentiment
as well. Management also remains optimistic, as reflected in its
EPS projection of 73 cents in third-quarter 2014.
Meanwhile, one could also consider financial stocks like
FleetCor Technologies Inc. (
), Equifax Inc. (
) and WEX Inc. (
), all of which have the same Zacks Rank as Euronet Worldwide.
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