Bes Stocks To Buy 2014, Best Stocks For 2014: Euronet Worldwide Increases Sales but Misses Revenue Estimate

Wednesday, March 21, 2012

Euronet Worldwide Increases Sales but Misses Revenue Estimate

Euronet Worldwide (Nasdaq: EEFT ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Euronet Worldwide missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.

Gross margins contracted, operating margins contracted, net margins expanded.

Revenue details
Euronet Worldwide chalked up revenue of $319.4 million. The nine analysts polled by S&P Capital IQ predicted a top line of $326.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $283.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.46. The nine earnings estimates compiled by S&P Capital IQ forecast $0.41 per share on the same basis. GAAP EPS were $0.21 for Q4 versus -$1.19 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.3%, 50 basis points worse than the prior-year quarter. Operating margin was 7.2%, 30 basis points worse than the prior-year quarter. Net margin was 3.4%, 2,480 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $295.5 million. On the bottom line, the avera! ge EPS e stimate is $0.33.

Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $1.62.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 97 members out of 105 rating the stock outperform, and eight members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Euronet Worldwide a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Euronet Worldwide is outperform, with an average price target of $21.29.

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