Green Dot (GDOT 1.98%) wasn't exactly a "go" stock on Friday. The financial services company saw its share price plunge by nearly 10% on the day, following the release of quarterly earnings that missed on several important fundamentals.
For its Q4, Green Dot recorded non-GAAP (adjusted) operating revenue of just over $321 million, which was 17% higher on a year-over-year basis. That was on the back of 14% growth in gross dollar volume, to over $16.3 billion. In contrast, adjusted net income slipped by 12% to a shade over $15 million, or $0.27 per share.
On average, analysts tracking the stock were estimating the company would book just under $308 million in revenue. Yet they were anticipating a higher per-share adjusted net profit figure of $0.31.
Green Dot also announced that its board of directors approved a new stock buyback program. The company is now authorized to purchase up to $100 million worth of its common shares; the program is open-ended and has no expiration date.
But for many investors, the trailing earnings miss or the fresh share repurchase initiative were less important than Green Dot's guidance.
The financial services company forecast than in full-year 2022, adjusted operating revenue will creep up by around 2% to hit just over $1.39 billion to $1.43 billion. Adjusted per-share net profit should come in at $2.22 to $2.35 for a roughly 3% lift. Both numbers fell short of the average analyst estimates, which are $1.44 billion for the former line item, and $2.67 for the latter.