Euronet (EEFT) Q2 Earnings Surpass Estimates, Tumble Y/Y
Euronet Worldwide, Inc. EEFT reported second-quarter 2020 earnings of 4 cents per share. The Zacks Consensus Estimate was of a loss of 33 cents. However, the bottom line fell 98% year over year due to weak segmental performances and business affected by the COVID-19 pandemic.
The company’s net loss of $2.18 per share in the second quarter came against net income of $1.25 of the prior-year quarter.
Total revenues were $527.8 million, down 24% from the year-ago quarter.
However, the top line beat the Zacks Consensus Estimate by 10.9%.
Operating loss of $101.3 million in the second quarter came against the operating income of $117.9 million in the prior-year period.
Total operating expenses of $629.1 million were up 9.6% year over year due to higher impairment of goodwill plus depreciation and amortization.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
EFT Processing Segment’s total revenues plunged 66% (down 65% in constant currency) year over year due to lower transactions in Europe and the Asia Pacific. Adjusted EBITDA of ($14.8 million) dropped 116% (down 116% at cc) from the year-ago period. Operating loss of $56.6 million came against operating income of $76.5 million of the prior-year quarter.
The epay Segment’s total revenues inched up 2% year over year to $187.6 million (up 5% on constant currency basis). Adjusted EBITDA amounted to $19.7 million, increasing 2% from the year-earlier figure (up 6% on constant currency basis). Operating income of $18 million improved 2% year over year (up 7% on constant currency basis) on the back of digital media growth. Reported transactions were 585 million, up 59% year over year owing to better numbers across Europe and Brazil and robust contributions from India.
The Money Transfer Segment’s total revenues decreased 5% (down 4% at cc) year over year to $262.8 million. Adjusted EBITDA amounted to $36 million, reflecting a 17% decline (16% decrease at cc) from the prior-year quarter. Operating loss of $55.2 million came against the operating income of $35.3 million in the year-ago quarter. This segment’s total transactions of 25.8 million were down 11% year over year.
Corporate and Other Segment reported an expense of $7.5 million for the quarter, down 34.8% year over year.
Total assets at second-quarter end were $3.9 billion, down 14.9% from the level at 2019 end.
Cash and cash equivalents increased 10% to $864.9 million from the figure at 2019 end.
Debt obligations, net of current portion, were up 0.9% year over year to $1.1 billion from the level at 2019 end.
Zacks Rank and Performance of Other Players
Euronet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the other companies in the same space that already reported second-quarter earnings, the bottom-line results of American Express Company AXP ), Visa Inc. V and Synchrony Financial SYF beat the respective Zacks Consensus Estimate.
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