Green Dot Corporation
) is set to report third-quarter 2013 results on Oct 31 after the
closing bell. Last quarter it posted a 4.17% positive
surprise. Let's see how things are shaping up for this
Factors to Consider This Quarter
Green Dot, which markets prepaid debit cards and related
services both at retail locations and online, is facing strong
competition from major players like American Express. American
Express recently launched a reloadable prepaid card, giving stiff
competition to Green Dot's Walmart MoneyCard. AmEx's new card has
a lower monthly maintenance fee compared to Green Dot's card,
making it more attractive to customers.
Moreover, GreenDot faces competition from new entrants in the
market like drug stores and grocery store operators, which have
launched their own reloadable prepaid cards.
These factors are expected to negatively affect Green Dot's
earnings this quarter.
Our proven model does not conclusively show that Green Dot is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, #2 or #3 for this to happen. That
is not the case here as you will see below.
Negative Zacks ESP:
The Expected Surprise Prediction or ESP for Green Dot is -5.88%.
That is because the Most Accurate estimate stands at 16 cents
while the Zacks Consensus Estimate is higher at 17 cents.
Green Dot's Zacks Rank #4 (Sell) when combined with a negative
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
),has Earnings ESP of +0.14% and a Zacks Rank #2 (Buy).
VeriFone Systems, Inc.
), has Earnings ESP of +5.56% and a Zacks Rank #2 (Buy).
SouFun Holdings Ltd.
), has Earnings ESP of +1.16% and a Zacks Rank #1 (Strong
GREEN DOT CP-A (GDOT): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
VERIFONE SYSTMS (PAY): Free Stock Analysis
SOUFUN HLDG-ADR (SFUN): Free Stock Analysis
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