Euronet Worldwide Earnings: Here’s Why Shares are Down Now

Euronet Worldwide Inc. (NASDAQ:EEFT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Regardless, shares are down 1%.

Euronet Worldwide Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.9% to $0.47 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 9.96% to $351.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Euronet Worldwide Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company beat the mean analyst estimate of $0.46. It beat the average revenue estimate of $338.28 million.

Quoting Management: “I am pleased we delivered record annual adjusted cash earnings per share,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. “This earnings growth was the result of our continued focus on new products and markets together with effective execution across most of our business. Our EFT and Money Transfer Segments finished the year with strong 55% and 67% fourth quarter constant currency operating income growth, respectively,” continued Mr. Brown. “And, while we still face challenges in some of our epay markets, we are starting to see benefits from the non-mobile content and value added services we introduced during the year. We look forward to the second quarter 2013 when we expect epay to stabilize. ”

Key Stats (on next page)…

Revenue increased 11.01% from $316.36 million in the previous quarter. EPS increased from $0.42 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.37 to a profit $0.36. For the current year, the average estimate has moved down from a profit of $1.61 to a profit of $1.56 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)