Euronet (EEFT) Q2 Earnings Meet, EFT Processing Unit Aids

Core Insights - Euronet Worldwide, Inc. (EEFT) reported second-quarter 2024 adjusted earnings of $2.25 per share, matching the Zacks Consensus Estimate, with an 11% year-over-year increase in earnings [1][3] - The company's total revenues improved by 5% year over year to $986.2 million, although it fell short of the consensus estimate by 2.4% [13] Segment Performance - The EFT Processing segment generated revenues of $305.4 million, an 8% year-over-year increase, but missed the Zacks Consensus Estimate of $310.9 million [5] - The epay segment recorded revenues of $260.9 million, down 1% year over year, and also missed the consensus mark of $280.3 million [6] - The Money Transfer segment's revenues grew by 7% year over year to $421.8 million, surpassing the Zacks Consensus Estimate of $420.3 million [8] Financial Metrics - Net income for the quarter was $83.2 million, a decrease of 3.3% year over year, while operating income rose by 10% year over year to $134.3 million [3] - Adjusted EBITDA increased by 7% year over year to $178.2 million [4] - Total operating expenses rose by 4.3% year over year to $851.9 million, driven by higher direct operating costs and salaries [14] Debt and Cash Position - As of June 30, 2024, net debt obligations amounted to $1 billion, a decrease of 39.8% from December 31, 2023 [10] - The company had approximately $802 million remaining under its revolving credit facilities at the end of the second quarter [11] - Euronet exited the quarter with cash and cash equivalents of $1.3 billion, a 1.4% increase from the end of 2023 [21] Future Outlook - Management expects adjusted earnings per share (EPS) to grow by 10-15% year over year in 2024 [23]