Euronet Worldwide shares rise on robust Q4 earnings

Investing.com -- Shares of Euronet Worldwide (NASDAQ: NASDAQ:EEFT) climbed 14% following the announcement of its fourth quarter earnings, which surpassed analyst expectations. The company reported an adjusted EPS of $2.08, marginally higher than the forecasted $2.05, and revenue figures reached $1.05 billion against a consensus estimate of $1.04 billion.

The growth in Euronet Worldwide’s stock comes on the back of a solid financial performance in the fourth quarter compared to the same period last year. The company saw a 9% increase in revenue from $957.7 million, and a significant rise in operating income by 26% from $97.4 million. Adjusted earnings per share also saw a 10% increase from the previous year’s $1.88.

Euronet’s Chairman and Chief Executive Officer, Michael J. Brown, expressed satisfaction with the company’s performance, highlighting a 15% growth in adjusted EPS for the full year, which he attributed to robust results across all three of Euronet’s segments. Brown emphasized that the increase in adjusted EPS was driven by a 16% increase in operating income, thanks to revenue growth, scale, and cost management.

The company’s EFT Processing Segment reported a 12% revenue increase, with a notable 46% jump in operating income. This surge was attributed to growth in transactions across nearly all markets, new market expansions, and the merchant acquiring business. The epay Segment also saw growth, with revenues up by 8% and a 31% increase in transactions, bolstered by expansion in digital branded payment and mobile sales.

The Money Transfer Segment was not left behind, as it reported a 9% revenue increase and an 11% rise in total transactions. This growth was partly due to a 33% increase in direct-to-consumer digital transactions.

Looking ahead, Euronet anticipates its 2025 adjusted EPS to grow between 12% and 16%, which aligns with its historical compounded annualized growth rates. The company’s financial position remains strong, with unrestricted cash and cash equivalents totaling $1.28 billion as of December 31, 2024, and an increased and extended credit facility to $1.90 billion in December 2024.

Euronet’s performance reflects its ability to navigate the complexities of the global economy while capitalizing on growth opportunities in the digital transactions space. As the company continues to expand its global footprint and diversify its service offerings, investors are closely watching for sustained growth and profitability in the coming year.

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