Euronet Worldwide Hits New 52-Week High on Solid Core Growth - Analyst Blog

Shares of Euronet Worldwide Inc. ( EEFT ) 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.

Earnings Review

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 th 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 higher-margin products.

Moroever, Euronet Worldwide is boosting its organic growth capacities through its Walmart ( WMT ) 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. ( FLT ), Equifax Inc. ( EFX ) and WEX Inc. ( WEX ), all of which have the same Zacks Rank as Euronet Worldwide.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

EURONET WORLDWD (EEFT): Free Stock Analysis Report

WAL-MART STORES (WMT): Free Stock Analysis Report

EQUIFAX INC (EFX): Free Stock Analysis Report

FLEETCOR TECH (FLT): Free Stock Analysis Report

WEX INC (WEX): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More