Euronet Beats EPS, Misses Top Line - Analyst Blog
27 7월 2012 - 1:45AM
Zacks
Euronet Worldwide Inc. (EEFT) reported second
quarter earnings of 39 cents per share, beating the Zacks Consensus
Estimate of 32 cents and 35 cents earned in the year-ago quarter.
Earnings of $20.2 million in the reported quarter was 9.8% more
than $18.4 million recorded in the second quarter of 2011.
Including foreign exchange loss, intangible asset amortization,
share-based compensation, non-cash 3.5% convertible debt accretion
interest and non-cash GAAP tax expense the company reported a net
income of $5.7 million or 11 cents per share compared to $11.9
million or 23 cents in the prior-year quarter.
Operational
Update
During the quarter under review, total revenue of Euronet
Worldwide grossed $302.4 million, climbing 8% from $279.8 million
in the year-ago quarter, but a tad below the Zacks Consensus
Estimate of $303 million.
Total operating expenses for the second quarter amounted to
$282.5 million; increasing 8.2% from the prior-year quarter
primarily due to increase in operating costs, salaries and benefit
related expenditure.
Total operating income amounted to $19.9 million increasing 5.9%
over the year-ago quarter.
Total transactions for the company increased 13% to 570 million,
considering contributions from all its segments.
Segment Details
The EFT Processing Segment reported
total revenue of $58.3 million increasing 14.8% over the prior-year
quarter. Its operating income increased 12% to $10.3 million during
the second quarter.
The improved performance came on the back of an extensive ATM
network in Europe and India, together with the purchase of 51% of
the outstanding shares of the Euronet Middle East (ENME) joint
venture in the previous quarter. This segment recorded a total
transaction of 291 million against 233 million in the year-ago
quarter.
The ePay Segment reported total
revenue of $166.7 million increasing 7% over the prior-year
quarter. The increase in revenue was primarily due to the
acquisition of cadooz in the penultimate quarter of 2011, partially
offset by the change in mobile operator strategy in Brazil and
mobile operators going direct with retailers in Australia in the
previous year.
Operating income plunged 25% to $10.1 million during the second
quarter. Strong performance in Germany and the U.S. was more than
offset by weak results from Brazil, Australia and Spain. Total
transactions amounted to 272 million, increasing marginally by 3%
over the prior-year quarter.
The Money Transfer Segment’s total
revenue improved 6% over the prior year-ago quarter to equal $77.5
million in the quarter under review. Operating income surged 34% to
$6.7 million during the reported quarter. An increase of 21% in
total transactions contributed to the expansion of revenue and
operating income. The total transactions surged 21% over the
last-year quarter to 7.4 million in the second quarter.
The company’s Corporate and Other
reported total expenses of $7.2 million in the reported quarter.
The decrease of 19.1% was attributable to lower short-term
incentive and stock-based compensation accruals based on the
company’s performance.
Financial Position
Euronet Worldwide exited the second quarter with cash and cash
equivalents of $178.6 million. The decline from $180.7 million at
prior-quarter end was primarily due to shedding off of debt
obligations, incurring higher capital expenditure and higher tax
amount. However, healthy cash from operations were a partial
offset.
Total debt obligation in the company’s books amounted to $140.8
million decreasing from $161.7 million as on December 31, 2011.
Guidance
With the assumption of a constant foreign currency rate
remaining stable, the company guided the upcoming third quarter
cash earnings to be around 41 cents per share.
Peer Take
The company competes closely with The Western Union
Company (WU), which reported second quarter operating
earnings of 46 cents per share, up 2.2% year over year and 3 cents
ahead of the Zacks Consensus Estimate.
Western Union’s revenues for the quarter were $1.4 billion, up
4% year over year but down 1.5% from the Zacks Consensus Estimate.
The year-over-year upside in revenue was attributable to a 26%
surge in foreign exchange revenues and a 3% increase in other
revenues.
Zacks Rank
Euronet Worldwide carries a Zacks #4 Rank, implying a short-term
Sell rating and its peer Western Union retains a quantitative Zacks
#3 Rank that translates into a short-term Hold rating.
EURONET WORLDWD (EEFT): Free Stock Analysis Report
WESTERN UNION (WU): Free Stock Analysis Report
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Western Union (NYSE:WU)
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Western Union (NYSE:WU)
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부터 7월(7) 2023 으로 7월(7) 2024