Euronet Worldwide, Inc. – Momentum – Zacks Rank Buy
Source: http://www.zacks.com/commentary/12623/Euronet+Worldwide%2C+Inc.+-+Momentum+-+Zacks+Rank+BuyPosted on Wednesday, November 4th, 2009 | In Investing Lessons, Stocks to Watch
Euronet Worldwide, Inc. (EEFT) recently reported better than expected third-quarter results after shares have more than tripled over the last 7 months.
Company Description
Euronet Worldwide, Inc. provides electronic payment services domestically and internationally. The company was founded in 1994 and has a market cap of $1.17 billion.
Shares of EEFT have gained more 200% in the last 7 months after bottoming out below $8 in early March. The company’s recent third-quarter results, reported on Oct 28, were better than expected.
Third-Quarter Results
Sales were down 5.7% from last year but earnings came in better than expected at 34 cents per share, 6 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 4 quarters by an average of 5 cents, or 19%.
Euronet noted that its results were helped by stronger profits in Europe and India related to its electronic financial transaction processing unit. But the company also added that currency exchanges hurt its results, effected by the weak Dollar compared to last year.
Estimates Advance
Estimates have advanced on word of the good quarter, with the current year adding 4 cents and climbing to $1.17 per share. The next-year estimate is pegged at $1.42, a bullish 21% growth projection.
Valuation
Based on the current-year estimate shares of EEFT are trading with a P/E multiple of 18X, in line with the overall market.
The Chart
Shares of EEFT have been trading mostly sideways for the last few months after posting big gains earlier in the year. Take a look below.
Last 5 posts by Michael Vodicka
- Nordstrom Inc. - Momentum - Zacks Rank Buy - November 20th, 2009
- These 2 stocks are both on the move, one hitting a new 52-week high and the other moving into position to do so. - Charting Zacks Elite Stocks - November 20th, 2009
- Fossil Inc. - Momentum - Zacks Rank Buy - November 19th, 2009
- China Green Agriculture, Inc. - Momentum - Zacks Rank Buy - November 18th, 2009
- Sketchers USA Inc. - Momentum - Zacks Rank Buy - November 17th, 2009
cent;, EEFT, electronic payment services, Euronet Worldwide Inc.;, Europe, India, Investing Lessons, Stocks to Watch, USD, Zacks Market Commentaries
 About Michael Vodicka (http://www.zacks.com/)
Michael is an Editor at Zacks Investment Research who covers the Momentum and Aggressive Stocks for the Zacks Rank Buys. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.