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Green Dot (GDOT) Q3 Earnings Beat Estimates, Increase Y/Y

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Green Dot Corporation GDOT reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Better-than-expected results failed to impress investors, as there has not been any major price change since the earnings release on Nov 4.

Quarterly earnings (excluding 30 cents from non-recurring items) of 43 cents per share surpassed the consensus estimate by 19.4% and increased 72% on a year-over-year basis. Non-GAAP operating revenues of $328.9 million surpassed the consensus mark by 7.9% and increased 18% year over year.

Shares of the company have declined 19% in the past year compared with a 16.6% loss of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research

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Segmental Revenues

The Consumer Services segment’s revenues came in at $167.5 million, up 11.3% from the year-ago quarter’s level.

The B2B Services segment’s revenues of $118.2 million increased 53.3% year over year.

Money Movement Services segment’s revenues were up 19.3% year over year to $45.6 million.

Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote

Key Metrics

Gross dollar volume increased 13.1% year over year to $16.4 billion. Purchase volume dropped 2.6% from the prior-year quarter’s level to $7.4 billion. The company ended the quarter with 5.37 million active accounts, down 6.11% year over year.

Operating Results

Adjusted EBITDA of $46.2 million increased 37% on a year-over-year basis. Adjusted EBITDA margin of 14.1% was up from the year-ago quarter’s level of 12.1%.

Balance Sheet

Green Dot exited the third quarter with unrestricted cash, cash equivalents balance of $1.8 billion compared with $1.9 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $27.7 million of cash from operating activities and capex was $15.8 million.

Currently, Green Dot carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Raised Guidance

The company currently expects non-GAAP earnings per share (EPS) to be between $2.19 and $2.27 (previous outlook: $2.13 and $2.27). The midpoint ($2.23) of the raised guidance is above the current Zacks Consensus Estimate of $2.22 per share.

Non-GAAP total operating revenues are currently anticipated between $1.37 billion and $1.38 billion (previous outlook: $1.33 billion and $1.35 billion). The midpoint ($1.375 billion) of the raised guidance is slightly below the current Zacks Consensus Estimate of $1.37 billion.

Adjusted EBITDA is now expected in the band of $217-$223 million (previous outlook: $215-$225 million).

Performance of Some Other Business Services Companies

Equifax’s EFX third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.

IQVIA’s IQV third-quarter 2021 adjusted EPS of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.

Omnicom’s OMC third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.


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Equifax, Inc. (EFX) : Free Stock Analysis Report

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