Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Green Dot (NYSE:GDOT) have risen nearly 14% today after the company surpassed analyst expectations in its second-quarter earnings report.
So what: Green Dot reported $142.6 million in revenues, a 4% year-over-year improvement, and $0.33 in earnings per share for the second quarter. Since Wall Street was looking for $135.1 million on the top line and $0.29 on the bottom line, these results were enough to send investors scurrying to scoop up more shares. Looking ahead, Green Dot now expects full-year results of between $565 million to $575 million in revenue and between $1.05 and $1.19 in EPS. The revenue range is better than the $556.8 million consensus, but Green Dot's EPS guidance barely bested Wall Street's projection of $1.19 for the full year.
Now what: Analysts at Compass Point boosted their price target from $23 per share (which is about where shares are currently trading) to $26 per share, representing a potential -- and respectable -- 14% upside. The company's P/E is hardly stratospheric at its current level, just below 22, but it isn't exactly roaring ahead, with full-year revenue guidance that only beats last year's result by 5% at the high end. Is Green Dot a buy? Maybe. Is it a screaming buy? Probably not.
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