Euronet Worldwide, Inc. beat analysts estimates on earnings. Its revenue, though increased from the year-ago period, still fell short of expectations.
The electronic payment services company’s third-quarter 2019 earnings came in at $2.84 per share, surpassing the Zacks Consensus Estimate by 1.4%. Earnings were +31.5% higher compared to the year-ago quarter.
Total revenue increased +10.1% year-over-year to $787 million – but missed the Zacks Consensus Estimate by -4%.
EFT Processing Segment saw total revenues surge +21% (+26% in constant currency) year over year. Operating income for the segment was + 37% higher from the year-ago quarter (+42% on constant currency basis).
The company’s epay Segment’s total revenues increased +3% year-over-year (+7% up on constant currency basis). Operating income was up +23% year-over-year (+27% on constant currency basis).
The Money Transfer Segment’s revenues rose + 5% (+7% at constant currency). Operating income for this segment was up +6% in constant currency.
Euronet’s total transactions for the quarter came in at 1.23 million, representing a +21% year- over –year increase. The company’s overall operating income rose almost +29% to $194 million in the quarter.
Looking ahead, Euronet expects adjusted earnings per share for the fourth quarter to be around $1.61 (assuming foreign exchange to be stable).
The Aroon Indicator for EEFT entered a downward trend on April 17, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 179 similar instances where the Aroon Indicator formed such a pattern. In of the 179 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on EEFT as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
EEFT moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for EEFT crossed bearishly below the 50-day moving average on April 12, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EEFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where EEFT's RSI Indicator exited the oversold zone, of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where EEFT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EEFT advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
EEFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EEFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.979) is normal, around the industry mean (29.955). P/E Ratio (19.751) is within average values for comparable stocks, (155.220). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.725). Dividend Yield (0.000) settles around the average of (0.081) among similar stocks. P/S Ratio (1.520) is also within normal values, averaging (55.388).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EEFT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of electronic financial processing services
Industry PackagedSoftware