NASDAQ$EEFT

Euronet Worldwide Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Euronet's financial performance was impacted by the COVID-19 pandemic, with revenue slightly increasing but operating income and net income significantly decreasing compared to the same period last year.

Euronet Worldwide reported a slight increase in revenue but a significant decrease in operating and net income for Q1 2020 due to the COVID-19 pandemic. The company focused on employee safety, customer service, and fiscal responsibility. Despite challenges, Euronet maintained a strong cash position and implemented cost-saving measures.

  • Revenues increased by 1% to $583.9 million, impacted by COVID-19.
  • Operating income decreased by 44% to $31.6 million due to fewer European ATM transactions and SG&A investments.
  • Net income attributable to Euronet decreased to $1.9 million, with diluted earnings per share at $0.04.
  • The company is implementing cost-saving measures and focusing on long-term growth despite the pandemic's impact.

Headline financials

Total Revenue

$584M

Previous: $578M+1.1%
EPS (adj)

$0.55

Previous: $0.85-35.3%
EFT Processing Segment Active ATMs

42.2K

No prior period
epay Processing Transactions

447.0M

Previous: 338.0M+32.2%
Money Transfer Transactions

27.4M

Previous: 26.6M+3.0%
EFT Processing Segment Transactions

785.0M

Previous: 692.0M+13.4%
Capital Expenditures

-$30.4M

Previous: $31.4M-196.8%
Free Cash Flow

-$28.5M

Previous: -$18.4M-54.5%
Net Income

$1.92M

Previous: $34.5M-94.4%
Operating Income

$31.6M

Previous: $56.1M-43.7%
Gross Profit

$224M

Previous: $224M+0.3%
Cash & Equivalents

$710M

Previous: $558M+27.1%
Total Assets

$4.18B

Previous: $3.81B+9.7%
Stock-Based Comp

$6.34M

Previous: $4.49M+41.2%

Revenue & EPS history

Euronet · Revenue · Quarterly

$584M

Q1 2020+1.1%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Euronet · $585M total across 3 segments · Q1 2020

  • Money Transfer
    $266M+3.8%
  • epay
    $173M-1.8%
  • EFT Processing
    $146M+0.1%

Forward guidance

The Company expects that in the second quarter its Adjusted EBITDA will be nearly break-even and after capital expenditures, interest and taxes, the business will consume approximately $25 million of its cash, which is readily available from the Company's cash balances.

Tailwinds

  • Leading-edge technology platforms
  • Diverse product portfolio
  • Global geographic presence
  • Implemented cost saving measures
  • Very strong balance sheet with plenty of liquidity

Headwinds

  • Adjusted EBITDA will be nearly break-even
  • The business will consume approximately $25 million of its cash
  • Transaction declines in EFT segment's ATM business ranging from minimal declines to as much as 95%
  • Decreases in the brick-and-mortar channels have been about 35%
  • Majority of digitally-initiated transactions have been low-margin transactions in India

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.0%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+16.2%

Q4 2014

Best reaction

-20.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-4.3%-4.3%
Q4 2025-3.3%+0.5%+1.3%
Q3 2025-5.8%-10.4%-17.3%
Q1 2025+3.4%+4.3%+11.5%
Q4 2024-1.5%+9.2%+6.7%
Q3 2024+5.4%+4.7%+8.7%
Q2 2024-5.3%-5.9%-4.2%
Q1 2024-0.3%+5.3%+8.8%
Q4 2023+1.3%+1.6%+9.7%
Q3 2023+9.5%+6.4%+10.7%
Q2 2023-20.3%-24.7%-27.7%
Q1 2023-2.1%+0.0%+2.3%
Q4 2022-3.4%-0.3%-7.2%
Q3 2022+5.8%+6.9%+15.6%
Q2 2022-2.1%-3.4%-7.5%
Q1 2022-5.6%-10.8%-12.8%
Q4 2021+5.4%-0.2%-18.2%
Q3 2021-8.4%-9.1%-18.6%
Q2 2021+2.1%+6.7%-0.1%
Q1 2021-1.9%-2.4%+0.1%
Q4 2020+2.4%+8.1%+17.3%
Q3 2020-3.6%-3.0%+49.4%
Q2 2020+2.3%-2.1%+5.9%
Q1 2020+9.2%+3.8%+9.3%
Q4 2019-6.4%-8.0%-45.8%
Q3 2019-5.1%-3.3%+5.2%
Q2 2019-4.1%-4.0%-7.8%
Q1 2019+1.8%+2.3%+5.9%
Q4 2018+8.3%+10.2%+16.0%
Q3 2018+0.3%-2.2%-1.7%
Q2 2018+11.9%+10.8%+14.3%
Q1 2018+5.5%+3.7%+8.6%
Q4 2017-3.4%-8.0%+2.1%
Q3 2017+3.3%+0.2%-8.1%
Q2 2017+2.8%+4.1%+2.8%
Q1 2017-1.4%-0.8%-0.3%
Q4 2016+6.2%+10.8%+14.0%
Q3 2016-1.0%-2.0%-7.1%
Q2 2016+6.0%+5.3%+6.8%
Q1 2016+3.7%
Q4 2015-8.7%
Q3 2015+7.0%
Q2 2015+4.7%
Q1 2015+4.4%
Q4 2014+16.2%
Q3 2014+8.9%
Q2 2014+8.6%
Q1 2014+5.8%
Q4 2013-10.5%
Q3 2013+1.8%
Q2 2013+9.6%
Q1 2013+5.8%
Q4 2012-2.4%
Q3 2012-0.6%
Q2 2012+5.2%
Q1 2012+1.8%
Q4 2011-2.2%
Q3 2011-1.3%
Q2 2011-0.9%
Q1 2010+1.1%
Q1 2011-1.7%
Q4 2008+2.0%
Q4 2010+2.0%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2010+1.6%
Q2 2009+1.6%
Q4 2009+1.6%

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