Euronet Worldwide (NASDAQ:EEFT) Sets New 52-Week Low on Disappointing Earnings

Key Points

• Euronet Worldwide shares hit a new 52-week low, falling to $59.75 after the company reported quarterly EPS of $3.55, below the $3.69 analyst consensus, and revenue of $1.16 billion versus expectations of $1.19 billion.
• Revenue increased just 1.3% year over year, while the stock declined 4.7%; analysts’ consensus remains “Hold” with an average price target of $81.60.
• Institutional investors own 91.6% of the company’s stock, with major investors including BlackRock, Turtle Creek Asset Management, and Reinhart Partners recently increasing or initiating positions.

Euronet Worldwide, Inc. (NASDAQ:EEFT - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $59.75 and last traded at $62.72, with a volume of 27,384 shares. The stock had previously closed at $63.95.

The business services provider reported $3.55 EPS for the quarter, missing analysts' consensus estimates of $3.69 by ($0.14). The business had revenue of $1.16 billion for the quarter, compared to analysts' expectations of $1.19 billion. Euronet Worldwide had a net margin of 6.63% and a return on equity of 28.60%. The business's revenue was up 1.3% compared to the same quarter last year. During the same period in the previous year, the business posted $3.62 earnings per share.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Wolfe Research reduced their target price on shares of Euronet Worldwide from $75.00 to $70.00 and set an "underperform" rating for the company in a research note on Tuesday, August 25th. Needham & Company LLC boosted their target price on shares of Euronet Worldwide from $85.00 to $90.00 and gave the company a "buy" rating in a report on Thursday, July 30th. DA Davidson reaffirmed a "buy" rating and set a $102.00 target price on shares of Euronet Worldwide in a report on Friday, July 10th. Weiss Ratings downgraded shares of Euronet Worldwide from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. Finally, Stephens began coverage on shares of Euronet Worldwide in a report on Friday, October 16th. They issued an "equal weight" rating and a $71.00 price objective for the company. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $81.60.

Institutional Investors Weigh In On Euronet Worldwide

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in Euronet Worldwide during the second quarter valued at approximately $244,726,000. Turtle Creek Asset Management Inc. lifted its stake in shares of Euronet Worldwide by 44.9% during the 1st quarter. Turtle Creek Asset Management Inc. now owns 1,847,040 shares of the business services provider's stock valued at $122,588,000 after buying an additional 572,194 shares in the last quarter. Reinhart Partners LLC. increased its stake in Euronet Worldwide by 9.2% in the 2nd quarter. Reinhart Partners LLC. now owns 1,627,141 shares of the business services provider's stock worth $119,091,000 after buying an additional 136,613 shares in the last quarter. Jupiter Topco LLC purchased a new position in shares of Euronet Worldwide in the second quarter valued at about $98,213,000. Finally, Janus Henderson Group PLC lifted its position in shares of Euronet Worldwide by 3.6% in the first quarter. Janus Henderson Group PLC now owns 1,406,556 shares of the business services provider's stock valued at $93,353,000 after acquiring an additional 48,990 shares in the last quarter. Hedge funds and other institutional investors own 91.60% of the company's stock.

Euronet Worldwide Stock Down 4.7%

The firm has a market capitalization of $2.32 billion, a PE ratio of 9.65, a P/E/G ratio of 0.53 and a beta of 0.85. The company has a debt-to-equity ratio of 1.47, a current ratio of 1.37 and a quick ratio of 1.37. The company has a 50-day moving average price of $67.30 and a 200 day moving average price of $70.69.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc is a global provider of electronic payment and transaction-processing services. Founded in 1994 and headquartered in Leawood, Kansas, the company serves financial institutions, retailers, mobile network operators, businesses and consumers through operations in markets around the world.

Euronet operates through three principal business segments: electronic financial transactions, epay and money transfer. Its electronic financial transaction business provides automated teller machine (ATM) services, point-of-sale services, card outsourcing, electronic payment processing and related financial technology solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.