What happened

Green Dot (NYSE:GDOT), the fintech company known for its prepaid debit cards and nontraditional checking accounts, reported its fourth-quarter and 2018 year-end earnings on Wednesday afternoon.

It's fair to say that the market isn't thrilled with the results. As of noon EST on Thursday, Green Dot was down by more than 9%.

At first glance, Green Dot's results look strong. Earnings of $0.56 per share handily beat the $0.49 figure analysts had been looking for, and revenue of $237.83 million came in just ahead of expectations as well. So if Green Dot beat expectations on both the top and bottom lines, why is the stock plunging?

Couple shopping online with card.

Image source: Getty Images.

So what

There's not a lot to dislike in Green Dot's fourth-quarter numbers. One potentially disappointing area is Green Dot's just-announced 2019 guidance. The company is expecting 6% year-over-year revenue growth in the first quarter, for example, as compared with the 12% growth Green Dot produced in the fourth quarter. The same can be said for the company's expected 10% year-over-year EPS growth.

Another potential reason for today's drop is a big analyst downgrade. JPMorgan Chase cut its price target on Green Dot from $97 to $83 this morning in the wake of the earnings announcement.

Now what

Green Dot is a business with a lot of long-term potential in the fintech space, but it's possible that analysts and investors simply don't think the 10% EPS growth expected in 2019 is worth paying more than 20 times forward earnings for. From a long-term perspective, however, Green Dot has several interesting possible catalysts to increase revenue and could be worth a look at the new lower share price.