Green Dot Earnings: Here’s Why Investors are Excited Now

Green Dot Corporation (NYSE:GDOT) 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. Shares are up 6.91%.

Green Dot Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.71% to $0.33 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 4.33% to $142.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Green Dot Corporation reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.29. It beat the average revenue estimate of $135.54 million.

Quoting Management: “We are pleased to deliver growth in revenues, adjusted EBITDA, and non-GAAP EPS in Q2. Additionally, we generated more than $60 million in operating cash flows. These solid financial results for this quarter combined with substantial distribution wins, the successful launch of our GoBank Mobile Bank Account product and our entry into new greenfield customer channels, like college campuses and check cashing stores, provides evidence that Green Dot Corporation has successfully navigated through the past year of uncertainty. Despite aggressive competition from large financial services companies and rigid self-imposed risk controls that materially reduced new customer enrollment, we believe Green Dot remains the clear leader in the prepaid space and is well positioned for the future,” said Steve Streit, Green Dot’s Chairman and Chief Executive Officer.

Key Stats (on next page)…

Revenue decreased 7.49% from $154.15 million in the previous quarter. EPS decreased 21.43% from $0.42 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate has moved up from a profit of $1.19 to a profit of $1.20 over the last ninety days.

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