The 10-second takeaway
For the quarter ended March 31 (Q1), Euronet Worldwide beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Euronet Worldwide booked revenue of $297.6 million. The seven analysts polled by S&P Capital IQ expected to see sales of $293.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $262.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The seven earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.26 for Q1 were 21% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.9%, 120 basis points worse than the prior-year quarter. Operating margin was 5.3%, 130 basis points worse than the prior-year quarter. Net margin was 4.4%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $310.5 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $1.61.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 106 rating the stock outperform, and seven members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Euronet Worldwide a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Euronet Worldwide is buy, with an average price target of $22.90.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.