Euronet Worldwide, Inc. EEFT reported fourth-quarter 2024 adjusted earnings per share of $2.08, which outpaced the Zacks Consensus Estimate by 3%. The bottom line rose 10% year over year.

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Total revenues improved 9% year over year and 10% on a constant-currency basis to $1.1 billion. The top line beat the consensus mark by 0.7%.

The quarterly results were aided by rising transaction volumes, merchant services business strength and an increase in digital branded payments. Growth in U.S.-outbound transactions and international money transfers also contributed to the performance. However, the upside was partly offset by an elevated expense level and a decline in intra-U.S. transactions.

EEFT’s Q4 Update

EEFT’s net income was $45.3 million, which dropped 34.8% year over year. Operating income climbed 26% year over year and 27% on a constant-currency basis to $122.7 million. 

Total operating expenses of $924.6 million increased 7.5% year over year due to higher direct operating costs, salaries and benefits, and selling, general and administrative expenses. 

Adjusted EBITDA improved 12% year over year and 13% on a constant-currency basis to $165.8 million.

EEFT’s Segmental Performances

The EFT Processing segment’s revenues rose 12% year over year and 13% on a constant-currency basis to $265.6 million in the fourth quarter. The metric was higher than the Zacks Consensus Estimate of $264.6 million.  

Adjusted EBITDA was $61.7 million, which advanced 18% year over year and 19% on a constant-currency basis. 

Operating income surged 46% year over year and 48% on a constant-currency basis to $37.3 million. Total transactions of 3,203 million improved 35% year over year. 

Rising transaction volumes across most markets, cost-cutting measures, an improved merchant services business and expansion into new markets benefited the unit’s performance. 

The epay segment recorded revenues of $342.2 million, which grew 8% year over year and 10% on a constant-currency basis. However, the metric fell short of the consensus mark of $348.5 million.

Adjusted EBITDA improved 10% year over year and 12% on a constant-currency basis to $49.9 million.

Operating income was $48 million, which advanced 10% year over year and 12% on a constant-currency basis. Transactions in the unit totaled 1,185 million, which surged 31% year over year.

The segment’s quarterly results benefited on the back of improved digital branded payment and mobile sales. 

The Money Transfer segment posted revenues of $441.9 million, which rose 9% year over year and on a constant-currency basis. The metric surpassed the Zacks Consensus Estimate of $428.1 million.

Adjusted EBITDA advanced 9% year over year and on a constant-currency basis to $64.4 million. 

Operating income of $58.4 million improved 13% year over year and 12% on a constant-currency basis. Total transactions grew 11% year over year to 46.9 million as a result of higher U.S.-outbound transactions, international-originated money transfers and direct-to-consumer digital transactions. However, the upside was partly offset by lower intra-U.S. transactions.

Corporate and Other expenses fell 11% year over year to $21 million.

EEFT’s Financial Update (as of Dec. 31, 2024)

Euronet exited the fourth quarter with cash and cash equivalents of $1.3 billion, which increased 2% from the 2023-end level. 

Total assets of $5.8 billion dipped 1% from the figure at 2023-end. 

Debt obligations, net of the current portion, amounted to $1.1 billion, down 33.9% from the figure as of Dec. 31, 2023. Short-term debt was $814 million.

Equity slipped 1.6% from the 2023-end figure to $1.2 billion.

There was roughly $1.3 billion left under EEFT’s revolving credit facilities at the fourth-quarter end.

Euronet’s Full-Year Update

In 2024, Euronet’s adjusted EPS improved 15% year over year to $8.61. Total revenues were $4 billion, which rose 8% year over year and 9% on a constant-currency basis.  

Operating income advanced 16% year over year and 18% on a constant-currency basis to $503.2 million.

Adjusted EBITDA of $678.5 million improved 10% year over year and 11% on a constant-currency basis. Revenues from the EFT Processing segment advanced 10% year over year in 2024. Revenues from the epay and Money Transfer units witnessed year-over-year increases of 6% and 8%, respectively.

EEFT’s 2025 Bottom-Line View Hiked

Management estimates achieving adjusted EPS growth in the 12-16% range in 2025, up from the prior range of 10-15%.

EEFT’s Zacks Rank

Euronet currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Finance Sector Players

Here are some other Finance sector players that have reported fourth-quarter results so far. The bottom-line results of Virtu Financial, Inc. VIRT, Synchrony Financial SYF and American Express Company AXP beat the respective Zacks Consensus Estimate.

Virtu Financial reported fourth-quarter 2024 adjusted EPS of $1.14, which outpaced the Zacks Consensus Estimate by 32.6%. The bottom line recorded a more than four-fold increase year over year. Adjusted net trading income improved more than 75% year over year to $457.7 million. It beat the consensus estimate by 14.7%. Revenues from commissions, net and technology services amounted to $140.5 million, rising 22.8% year over year. Interest and dividend income of $123.8 million fell from $154.7 million a year ago. 

Adjusted EBITDA jumped to $283.5 million from $99 million a year ago. Adjusted EBITDA margin of 57.5% improved 2,400 bps year over year. In the Market Making segment, adjusted net trading income was $347.9 million in the fourth quarter, up 107.7% year over year. The segment’s revenues rose 67.5% year over year to $706.5 million. The Execution Services unit recorded an adjusted net trading income of $109.8 million, which grew 17.6% year over year. Total revenues of $136.7 million grew 28.3% year over year. 

$Synchrony Financial(SYF-B)$ reported fourth-quarter 2024 adjusted EPS of $1.91, which beat the Zacks Consensus Estimate of $1.90. The bottom line also increased from $1.03 per share a year ago. Net interest income improved 2.7% year over year to $4.6 billion. Retailer share arrangements of Synchrony increased 4.7% year over year to $919 million. Total loan receivables of SYF grew 2% year over year to $104.7 billion. 

Total deposits were $82.1 billion, which rose 1.1% year over year but missed our estimate of $82.5 billion. Provision for credit losses decreased 13.5% year over year to $1.6 billion due to a reserve release. The purchase volume of Synchrony declined 3% year over year to $48 billion in the fourth quarter. Interest and fees on loans of $5.5 billion improved 2.9% year over year. Net interest margin deteriorated nine bps year over year to 15.01%.  New accounts of 5 million slipped 19% year over year. 

American Express reported fourth-quarter 2024 EPS of $3.04, which beat the Zacks Consensus Estimate by a whisker. The bottom line climbed 16% year over year. Total revenues, net of interest expense, amounted to $17.2 billion, which also beat the consensus estimate by a whisker. The top line improved 8.7% year over year. Network volumes of $464 billion rose 7% year over year. Total interest income of $6.1 billion increased 9% year over year.

Provision for credit losses declined 10% year over year to $1.3 billion.  The U.S. Consumer Services segment’s pre-tax income of $1.5 billion improved 5% year over year. Total revenues, net of interest expense, climbed 12% year over year to $8.3 billion. The Commercial Services segment recorded a pre-tax income of $814 million, which rose 22% year over year. Total revenues, net of interest expense, amounted to $4.1 billion, which grew 8% year over year. 

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