The 10-second takeaway
For the quarter ended March 31 (Q1), Euronet Worldwide beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased significantly. GAAP earnings per share contracted.
Gross margins contracted, operating margins grew, net margins dropped.
Euronet Worldwide booked revenue of $335.6 million. The six analysts polled by S&P Capital IQ expected revenue of $326.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $297.6 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 $0.38. The six earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. Non-GAAP EPS of $0.38 for Q1 were 15% higher than the prior-year quarter's $0.33 per share. GAAP EPS of $0.24 for Q1 were 7.7% lower than the prior-year quarter's $0.26 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 20.2%, much worse than the prior-year quarter. Operating margin was 5.7%, 40 basis points better than the prior-year quarter. Net margin was 3.6%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $341.7 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $1.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 104 members out of 113 rating the stock outperform, and nine members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Euronet Worldwide a green thumbs-up, and two 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 $28.25.
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