Euronet Worldwide, Inc. (EEFT), an electronic payments provider, reported a decrease in second quarter profit, hurt by higher expenses. The company also provided third quarter earnings guidance, which is below analysts' current estimates.
The Leawood, Kansas-based company's net income for the second quarter was $7.8 million or $0.15 per share, down from $8.5 million or $0.17 per share in the prior-year quarter.
Income from continuing operations remained flat with the prior year results at $8.3 million. Earnings per share from continuing operations decreased to $0.16 from $0.17 last year.
On average, eight analysts surveyed by First Call/Thomson Financial expected the company to earn $0.32 per share for the quarter.
Total revenues rose to $264.5 million from $233.4 million in the prior-year period. 7 analysts had a revenue consensus estimate of $266.73 million for the quarter.
Operating income for the quarter increased to $17.3 million from $15.3 million in the comparable period last year.
Total operating expenses jumped to $247.2 million from $218.1 million a year ago. Total other expense, which included impairment loss on investment securities, grew to $5.5 million from $1.7 million last year.
Looking ahead, the company said it expects cash earnings from continuing operations for the third quarter to be about $0.33 per share and fourth quarter to be about $0.36 per share. Analysts currently foresee earnings of $0.36 per share for the third quarter.
EEFT is currently trading at $16.25, down $1.79 or 9.92%.
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