Euronet Worldwide (EEFT, Financial) reported its first-quarter revenue at $915.5 million, falling short of analysts' projections of $1.07 billion. Despite the revenue miss, the company demonstrated significant growth in its earnings metrics, showcasing the effectiveness of its strategic initiatives.
The company achieved a notable 18% increase in adjusted operating income compared to the previous year, underpinned by robust performance across all its divisions. Euronet's strategic emphasis on its global payment network, specifically targeting high-value digital and cross-border transactions, has been a key driver of this earnings growth.
Furthermore, the company's adjusted earnings per share (EPS) improved to $1.33, marking an 18% rise from $1.13 in the same quarter of the prior year. This strong growth in adjusted EPS underscores Euronet's successful focus on enhancing its digital payment solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Euronet Worldwide Inc (EEFT, Financial) is $126.50 with a high estimate of $135.00 and a low estimate of $112.00. The average target implies an upside of 29.76% from the current price of $97.49. More detailed estimate data can be found on the Euronet Worldwide Inc (EEFT) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Euronet Worldwide Inc's (EEFT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Euronet Worldwide Inc (EEFT, Financial) in one year is $139.04, suggesting a upside of 42.63% from the current price of $97.485. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Euronet Worldwide Inc (EEFT) Summary page.
EEFT Key Business Developments
Release Date: February 13, 2025
- Revenue: $1 billion for Q4 2024; $4 billion for full year 2024.
- Operating Income: $123 million for Q4 2024; $500 million for full year 2024.
- Adjusted EBITDA: $166 million for Q4 2024; nearly $700 million for full year 2024.
- Adjusted EPS: $2.08 for Q4 2024, up 10% from prior year; $8.61 for full year 2024.
- Free Cash Flow: Nearly $65 million generated in Q4 2024.
- Share Repurchases: Approximately 0.5 million shares repurchased in Q4 2024.
- Unrestricted Cash: $1.3 billion at the end of Q4 2024.
- Debt: $1.9 billion at the end of Q4 2024.
- EFT Revenue Growth: 13% in Q4 2024, driven by travel season extension and market expansion.
- Epay Revenue Growth: 10% in Q4 2024, driven by digital branded content growth.
- Money Transfer Revenue Growth: 9% in Q4 2024, with 14% growth in US outbound transactions.
- Digital Transactions Growth: 33% in Q4 2024 for direct-to-consumer digital transactions.
- Credit Facility: Increased from $1.25 billion to $1.9 billion in December 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Euronet Worldwide Inc (EEFT, Financial) delivered a record fourth quarter with revenue of $1 billion, operating income of $123 million, and adjusted EBITDA of $166 million.
- The company achieved double-digit constant currency growth across all financial metrics in its EFT, Money Transfer, and Epay segments.
- Adjusted EPS increased by 10% compared to the prior year fourth quarter, exceeding consensus analyst estimates.
- Euronet Worldwide Inc (EEFT) produced strong free cash flows of nearly $65 million in the fourth quarter.
- The company successfully repurchased about 0.5 million shares, which is expected to improve earnings per share by 1% for all future periods.
Negative Points
- The decline in FX rates throughout the quarter negatively impacted adjusted EPS by approximately $0.03 to $0.04.
- Intra US business experienced a 14% decline, partially offsetting growth in other areas.
- The company anticipates a tax charge of approximately $0.20 to $0.25 per share in the first quarter of 2025 due to state income tax expense related to the repurchase of convertible bonds.
- The net decrease in unrestricted cash and cash equivalents was due to working capital fluctuations, share repurchases, and repayment of short-term borrowings.
- Despite strong performance, there is a perception challenge as the market does not always share the company's enthusiasm about its results and future opportunities.
