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Sep 30, 2020
Euronet Q3 2020 Earnings Report
Euronet's financial results exceeded expectations due to double-digit earnings growth in epay and Money Transfer, combined with better-than-anticipated results in EFT.
Key Takeaways
Euronet Worldwide reported a decrease in revenues and operating income for Q3 2020 compared to the same period in 2019, but exceeded adjusted EBITDA expectations due to double-digit earnings growth in the epay and Money Transfer segments and resilience in EFT.
Revenues decreased by 16% to $664.4 million compared to $787.0 million in Q3 2019.
Operating income decreased by 66% to $66.1 million.
Net income attributable to Euronet was $40.2 million, or $0.76 diluted earnings per share, compared to $137.6 million, or $2.46 diluted earnings per share in Q3 2019.
Adjusted earnings per share was $1.12, a 61% decrease from $2.84 in Q3 2019.
Revenue by Segment
Forward Guidance
The Company anticipates its fourth quarter adjusted EBITDA will be in the range of approximately $70 million to $80 million.
Positive Outlook
- Improving trends in Money Transfer
- Improving trends in epay
- Continued cost reductions
- Careful expense management actions
- Strong financial position
Challenges Ahead
- COVID-19 pandemic
- Government-imposed lock-down restrictions
- Second wave of the COVID-19 pandemic increased across Europe
- EFT transactions will likely remain depressed through the rest of the year
- Uncertainty in global COVID-19 management mandates
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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