Shares of Euronet Worldwide, Inc. EEFT have gained 23.6% in the past year compared with the industry’s 21.6% growth. With a market capitalization of $4.8 billion, the average volume of shares traded in the last three months was 0.4 million.

Euronet's growth is driven by expansions in its EFT Processing and Money Transfer segments, robust ATM network enhancements, strategic acquisitions and partnerships, all underpinned by a solid financial foundation.

The company, presently carrying a Zacks Rank #3 (Hold), has a decent record of beating estimates in three of the trailing four quarters and matching the mark once, the average earnings surprise being 9.04%.

Return on equity in the trailing 12 months is currently 31.7%, which is higher than the industry’s average of 20.9%. This substantiates the company’s efficiency in utilizing shareholders’ funds.

 

Image Source: Zacks Investment Research

 

Robust Growth Prospects of EEFT Stock

The Zacks Consensus Estimate for Euronet’s 2024 earnings is pegged at $8.64 per share, which indicates a 15.8% increase from the 2023 figure. The consensus mark for revenues is $3.9 billion, implying 6.2% growth from the year-ago figure.

The Zacks Consensus Estimate for 2025 earnings is pegged at $9.70 per share, which implies an 12.3% improvement from the 2024 estimate. The consensus mark for revenues is $4.2 billion, implying a 8.1% rise from the 2024 estimate.

Can Euronet Retain the Momentum?

Euronet's revenues continue to see robust growth, primarily driven by its EFT Processing and Money Transfer segments. In the first half of 2024, revenues rose 6.8% year over year.

The growth in the EFT Processing segment is supported by an increase in the average number of active ATMs, a recovery in cross-border transaction volumes and ongoing expansion into new markets. The Money Transfer segment is bolstered by an increase in U.S.-outbound transactions, direct-to-consumer digital transactions and international-originated money transfers.

Euronet consistently works to broaden its independent ATM network across various countries, aiming to process a greater number of transactions. In May 2024, it acquired Malaysian Electronic Payment System (“MEPS”) ATM terminals, aiming to strengthen its presence in the Malaysian market and reinforce its position as a leading player in the country's non-bank ATM sector.

Euronet’s strategy includes growth through acquisitions and partnerships, which help develop new products and services, increase revenues and strengthen its geographic footprint. In June 2024, the company inked a multi-year agreement with Onnipro, a top payment processing solutions provider in Brazil. Under this deal, Onnipro will leverage Euronet's Ren payments platform to strengthen its card-issuing capabilities. In April 2024, EEFT and SOFTONE Group, a major cloud-based business software provider in Greece and Southeast Europe, joined forces to offer integrated merchant-acquiring solutions in Greece.