Green Dot Corporation's stock plummeted by as much as 18.1% on Thursday, closing the day down 17% at $10.87, after the digital banking and fintech company reported disappointing third-quarter earnings and lowered its full-year guidance.
For the third quarter, Green Dot posted an adjusted profit of 13 cents per share, missing Wall Street expectations of 17 cents per share, according to data compiled by LSEG. The company attributed the shortfall to underperformance in its retail division, which has been a drag on the company's overall performance.
As a result, Green Dot now expects its full-year adjusted earnings per share to be between $1.33 and $1.36, significantly lower than its previous guidance range of $1.45 to $1.59. The company's CFO, Jess Unruh, acknowledged that "the retail division is falling short of the improvement that we had expected, which is impacting our guidance for the rest of the year."
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