Euronet Q3 revenue misses estimates on immigration policy impact
Overview
Payment processor's Q3 revenue grew 1% yr/yr, missing analyst expectations
Adjusted EPS for Q3 fell 2% and missed consensus
Company repurchased $50 mln of shares during the quarter
Outlook
Euronet revises 2026 outlook to revenue of about $4.375 bln
Company expects 2026 adjusted EBITDA of about $725 mln
Euronet forecasts 2026 adjusted EPS growth of about 10% year-over-year
Result Drivers
IMMIGRATION POLICY IMPACT - Co said continued pressure from U.S. immigration policy and global economic uncertainty weighed on Cross-Border Payments segment
DIGITAL ACCELERATORS - Revenue from digital accelerators grew 33% year-to-date, with digital transactions in Cross-Border Payments up 34% in Q3
COST INFLATION - Co said continued cost inflation affected adjusted EBITDA and operating income in Payments Infrastructure segment
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.16 bln | $1.20 bln (9 Analysts) |
Q3 Adjusted EPS | Miss | $3.55 | $3.72 (9 Analysts) |
Q3 Net Income | $113.60 mln | ||
Q3 Adjusted EBITDA | $226.10 mln | ||
Q3 Adjusted Operating Income | $169.90 mln | ||
Q3 Operating Income | $171.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Euronet Worldwide Inc is $81.50, about 27.4% above its October 26 closing price of $63.95
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)