Euronet Worldwide (NASDAQ:EEFT) Releases Earnings Results

Euronet Worldwide (NASDAQ:EEFTGet Free Report) released its quarterly earnings data on Thursday. The business services provider reported $2.82 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.97 by ($0.15), FiscalAI reports. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.14 billion. Euronet Worldwide had a net margin of 7.15% and a return on equity of 28.37%. Euronet Worldwide’s revenue was up 3.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.56 EPS.

Here are the key takeaways from Euronet Worldwide’s conference call:

  • Adjusted EPS rose 10% year over year to $2.82, supported by solid performance in payments infrastructure and epay despite cross-border payments weakness. Management reiterated its full-year adjusted EPS growth outlook of 10%–15%.
  • Digital accelerators remained the key growth engine, with revenue up 31% in the quarter and 35% year to date—well above the company’s 23% long-term framework. Ria Digital, issuing, merchant services, gaming, and CoreCard were highlighted as major contributors.
  • Cross-border payments revenue declined 5%, while operating income and adjusted EBITDA fell 35% and 32%, respectively. U.S. immigration enforcement reduced remittance volumes, particularly from the U.S. to Mexico, while last year’s results benefited from nonrecurring Pakistan fee rebates and foreign-exchange opportunities.
  • CoreCard gained additional traction through agreements with Upgrade and Peru’s Unibanca, which processes payments for nine banks and will replace its incumbent processor. Management said CoreCard has helped generate five or six deals and expects momentum to build as reference customers increase.
  • Euronet generated approximately $80 million of free cash flow and repurchased about $50 million of stock, with management indicating that further buybacks remain likely. However, the company expects approximately $6 million of additional interest expense in the second half from its euro-denominated bonds.

Euronet Worldwide Stock Down 8.4%

Shares of NASDAQ:EEFT traded down $7.00 during trading on Thursday, hitting $76.67. The stock had a trading volume of 1,681,975 shares, compared to its average volume of 703,455. The company has a market capitalization of $2.92 billion, a PE ratio of 11.06, a PEG ratio of 0.65 and a beta of 0.83. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.29. The firm’s fifty day moving average is $72.49 and its 200 day moving average is $71.56. Euronet Worldwide has a 12 month low of $62.50 and a 12 month high of $105.86.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Weiss Ratings upgraded Euronet Worldwide from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday. DA Davidson reissued a “buy” rating and set a $102.00 price objective on shares of Euronet Worldwide in a research report on Friday, July 10th. Finally, Needham & Company LLC upped their price objective on shares of Euronet Worldwide from $85.00 to $90.00 and gave the stock a “buy” rating in a report on Thursday. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $96.00.

Get Our Latest Research Report on EEFT

Insiders Place Their Bets

In other news, Director Thomas A. Mcdonnell purchased 3,000 shares of Euronet Worldwide stock in a transaction that occurred on Tuesday, May 26th. The shares were bought at an average cost of $66.87 per share, with a total value of $200,610.00. Following the completion of the purchase, the director directly owned 100,219 shares in the company, valued at approximately $6,701,644.53. This trade represents a 3.09% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 12.19% of the stock is currently owned by insiders.

Institutional Trading of Euronet Worldwide

A number of hedge funds and other institutional investors have recently modified their holdings of EEFT. Goldman Sachs Group Inc. boosted its stake in Euronet Worldwide by 17.0% during the first quarter. Goldman Sachs Group Inc. now owns 628,384 shares of the business services provider’s stock worth $67,143,000 after acquiring an additional 91,348 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Euronet Worldwide by 4.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 121,475 shares of the business services provider’s stock valued at $12,980,000 after purchasing an additional 5,009 shares in the last quarter. Focus Partners Wealth purchased a new position in shares of Euronet Worldwide during the first quarter valued at approximately $202,000. Geneos Wealth Management Inc. boosted its position in shares of Euronet Worldwide by 48.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 334 shares of the business services provider’s stock worth $36,000 after purchasing an additional 109 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Euronet Worldwide by 422.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,631 shares of the business services provider’s stock worth $165,000 after purchasing an additional 1,319 shares in the last quarter. 91.60% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Euronet Worldwide

Here are the key news stories impacting Euronet Worldwide this week:

  • Positive Sentiment: Needham raised its price target from $85 to $90 and maintained a Buy rating, implying meaningful upside from recent trading levels. Benzinga
  • Positive Sentiment: Management reiterated its 2026 adjusted EPS growth target of 10% to 15%, while adjusted EPS increased 10% year over year to $2.82.
  • Positive Sentiment: Digital accelerator revenue grew 31% year over year and represented 26% of quarterly revenue. Euronet also announced new partnerships with Unibanca, Capcom and six Dandelion partners, including Mastercard Move. Euronet Second-Quarter Results
  • Positive Sentiment: The company repurchased $50 million of stock, or approximately 705,000 shares, signaling confidence in its valuation and returning capital to shareholders.
  • Neutral Sentiment: Revenue rose 3% to $1.108 billion, and the Payments Infrastructure and epay segments delivered revenue and adjusted EBITDA growth. However, transaction volumes in epay declined 11%, primarily because of lower-volume transactions in India.
  • Negative Sentiment: Adjusted EPS of $2.82 missed the $2.97 consensus estimate, while revenue also missed expectations of approximately $1.14 billion. The earnings shortfall is the primary reason the stock decreased.
  • Negative Sentiment: Reported operating income fell 14% and adjusted EBITDA declined 6%. GAAP net income attributable to Euronet dropped 21% to $77.4 million, or $1.71 per diluted share.
  • Negative Sentiment: The Cross-Border Payments segment was the major weakness: revenue declined 4%, operating income plunged 34% and adjusted EBITDA fell 31%. Management cited a contraction in the U.S. outbound remittance market, immigration-policy changes and the absence of favorable prior-year items.
  • Negative Sentiment: Net debt increased during the quarter, partly because of higher ATM cash needs and the stock repurchase program, adding a modest balance-sheet concern.

Euronet Worldwide Company Profile

(Get Free Report)

Euronet Worldwide, Inc is a global financial technology company specializing in electronic payment services and transaction processing. Through its three primary business segments—Electronic Funds Transfer (EFT) Network Services, epay® Prepaid and Payment Services, and Money Transfer—Euronet provides end-to-end solutions that enable secure, efficient and convenient payments for consumers, financial institutions and retailers worldwide.

In its EFT Network Services arm, Euronet operates one of the world’s largest ATM and point-of-sale (POS) terminal networks, offering deployment, management and connectivity services.

Further Reading

Earnings History for Euronet Worldwide (NASDAQ:EEFT)

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