Euronet Worldwide, Inc. EEFT delivered third-quarter 2019 earnings of $2.84 per share, beating the Zacks Consensus Estimate by 1.4%.
Moreover, the bottom line improved 31.5% year over year. This upside can mainly be attributed to higher revenue contribution by all segments.
The company’s reported net income also surged 30.2% to $2.46 earnings per share in the quarter under review.
Further, its total revenues were $787 million, up 10.1% from the year-ago quarter. Meanwhile, the top line missed the Zacks Consensus Estimate by 4%.
Euronet’s total transactions were 1.23 million, having increased 21% year over year.
Additionally, operating income rose nearly 29% to $194 million in the quarter under review.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote
EFT Processing Segment’s total revenues grew 21% (26% in constant currency) year over year to $261.7 million on the back of higher transactions and a rise in operated ATMs. Adjusted EBITDA amounted to $168.9 million, up 33% (38% at cc) from the year-ago period. Operating income for the segment was $150.9 million, up 37% year over year (up 42% on constant currency basis).
The epay Segment’s total revenues increased 3% year over year to $185.4 million (7% up on constant currency basis). Adjusted EBITDA amounted to $21.7 million, up 19% improvement from the year-earlier figure (23% up on constant currency basis). Operating income stands at $20.1 million, up 23% year over year (27% on constant currency basis). This segment reported transactions of 389 million, up 40% year over year.
The Money Transfer Segment’s total revenues climbed 5% (7% at cc) year over year to $280.8 million, backed by 5% higher transactions. Adjusted EBITDA amounted to $43.7 million, reflecting a 4% improvement (6% increase at cc) from the prior-year quarter. Operating income for this segment totaled $35.6 million, up 6% in constant currency. This segment reported total transactions of 29.3 million, up 5% year over year.
Corporate and other Segment incurred an expense of $12.6 million in the reported quarter, up 24% year over year.
Euronet expects adjusted earnings per share for the fourth quarter to be nearly $1.61 (assuming forex to be stable).
Total assets at third-quarter end were $4.3 billion, up 30% from the level at 2018 end.
Cash and cash equivalents improved nearly 64.2% to $1.7 billion from the figure at 2018 end.
The company’s total indebtedness declined 21.4% to $1.1 billion year over year. This decrease was owing to the impact of favorable foreign currency translation on its Euro-dominated debt.
Euronet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases From Finance Sector
Global Payments Inc. GPN is slated to announce third-quarter earnings on Oct 31. The consensus estimate for earnings is pegged at $1.67, implying growth from $1.44 reported in the prior-year quarter. The stock carries a Zacks Rank of 3.
Fiserv, Inc. FISV is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for the same stands at 98 cents, indicating 30.7% increase from the year-ago reported figure. The stock has a Zacks Rank #2 (Buy).
WEX Inc. WEX is set to report third-quarter earnings on Oct 30. The consensus mark for earnings is pegged at $2.59, suggesting 18.3% improvement from the year-earlier reported figure. The company is Zacks #3 Ranked.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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 Worldwide, Inc. (EEFT): Free Stock Analysis Report
WEX Inc. (WEX): Free Stock Analysis Report
Global Payments Inc. (GPN): Free Stock Analysis Report
Fiserv, Inc. (FISV): Free Stock Analysis Report
To read this article on Zacks.com 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.