Euronet Worldwide Posts Q3 Earnings Beat, Sees Q4 EPS Above Consensus

Euronet Worldwide Inc EEFT reported Q3 FY23 revenue growth of 8% Y/Y (+3% Y/Y in constant currencies) to $1,004.0 million, exceeding the consensus of $983.68 million.

EFT Processing Segment revenues increased by 8% Y/Y (+2% Y/Y in constant currencies) to $345.8 million, led by continued growth in the POS acquiring business and Asia. 

As of September 30, 2023, total installed ATMs stood at 53,272 (+4% Y/Y), with operated active ATMs of 51,496 (+4% Y/Y).

Revenues from the epay Segment grew 6% Y/Y to $264.5 million on continued digital media and mobile growth, and Money Transfer Segment revenues were up 8% Y/Y to $395.9 million. 

As of September 30, 2023, POS terminals were about 810,000 (+4% Y/Y). 

Adjusted EBITDA stood at $212.5 million (-4% Y/Y in constant currencies) vs. $211.6 million a year ago.

Adjusted EPS of $2.72 (-1% Y/Y) exceeded the consensus of $2.70.

As of September 30, 2023, cash and cash equivalents stood at $1.074 billion, ATM cash of $603.5 million, and availability under its revolving credit facilities of around $1.08 billion.

"Money Transfer produced strong third quarter results compared to prior year across all financial metrics, as well as margin expansion from continued growth in both physical and digital transactions and effective cost management. In EFT, our POS acquiring business continues to deliver strong growth rates, with earnings doubling in the first 18 months post-acquisition, and we saw a positive trend reversal in our international ATM transactions as we ended the quarter. In epay, our core business delivered strong results from continued digital media and mobile growth," said Michael J. Brown, Chairman and CEO.

Outlook: The company expects Q4 FY23 adjusted EPS of $1.75 (vs. consensus of $1.68). 

EEFT projects FY24 adjusted EPS growth of 10%-15% Y/Y consistent with its 10 and 20-year compounded annualized growth rates. 

Price Action: EEFT shares are trading higher by 3.38% at $79.55 premarket on the last check Friday.