The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Euronet Worldwide beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted to a loss.
Gross margins grew, operating margins expanded, net margins shrank.
Euronet Worldwide tallied revenue of $351.2 million. The six analysts polled by S&P Capital IQ hoped for a top line of $338.2 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $319.4 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 $0.44. The six earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. GAAP EPS were -$0.26 for Q4 compared to $0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.8%, 3,840 basis points better than the prior-year quarter. Operating margin was 7.6%, 40 basis points better than the prior-year quarter. Net margin was -3.7%, 710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $321.2 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $1.87.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 105 members out of 113 rating the stock outperform, and eight 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 $25.63.
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