Shares of Euronet Worldwide (EEFT 8.80%) were up 8.8% as of 3:25 p.m. EDT Friday, according to data provided by S&P Global Market Intelligence, after the electronic payment services company announced strong quarterly results.
Delivering consistent results despite geopolitical and economic challenges
Euronet’s third-quarter revenue climbed 8% year over year (3% on a constant-currency basis) to just over $1 billion, while adjusted (non-GAAP) earnings per share fell 1% to $2.72. Analysts, on average, were looking for adjusted earnings of only $2.70 per share on revenue of $986 million.
In fact, this was Euronet’s first-ever $1 billion+ revenue quarter despite economic and geopolitical strife around the world — a feat Chairman and CEO Michael Brown credited to both Euronet’s geographical diversity and the consistency of its product.
Euronet also said it took advantage of its depressed stock price to repurchase $300 million in shares during the quarter, a significant sum relative to the company’s market cap at just over $4 billion as of this writing.
Is Euronet a buy now?
Looking to the current fourth quarter of 2023, Euronet expects adjusted earnings per share of $1.75 and above-consensus estimates for fourth-quarter earnings of $1.68 per share. Meanwhile, assuming there are no significant changes in foreign exchange or interest rates, the company anticipates full-year 2024 adjusted earnings per share to increase by around 10% to 15% year over year from 2023 — roughly $7.43 per share at the midpoint of its range. Here again, that’s well above Wall Street’s models for 2024 earnings of around $7.29 per share.
In the end, Euronet Worldwide is showing investors it can survive and thrive regardless of global economic and geopolitical challenges. In my view, today’s gain could definitely be the start of a longer-term positive trend.
