Green Dot Earnings: Here’s Why Investors are Happy 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 5.41%.

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Green Dot Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12.5% to $0.42 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 9.46% to $155.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Green Dot Corporation reported adjusted EPS income of $0.42 per share. By that measure, the company beat the mean analyst estimate of $0.37. It beat the average revenue estimate of $143.41 million.

Quoting Management: “Our first quarter results were better than our internal forecast. The solid gains in our key usage metrics, particularly in average spend, reloads, and revenue per card, helped us deliver non-GAAP revenue growth of 8% year-over-year. Our Q1 results demonstrate that, despite increased direct competition and new, more stringent risk controls, Green Dot remains a strong and growing leader in the prepaid market. While we are generally pleased with how things played out in Q1, we believe there is still a lack of certainty for the remainder of the year,” said Steve Streit, Green Dot’s Chairman and Chief Executive Officer.

Key Stats (on next page)…

Revenue increased 17.21% from $132.92 million in the previous quarter. EPS increased 35.48% from $0.31 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 $0.31 to a profit $0.29. For the current year, the average estimate has moved down from a profit of $1.22 to a profit of $1.16 over the last ninety days.

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