GDOT's Earnings and Revenues Surpass Estimates in Q4

Green Dot Corporation GDOT reported impressive fourth-quarter 2024 results. Earnings and revenues beat the Zacks Consensus Estimate.See the Zacks Earnings Calendar to stay ahead of market-making news.The stock has declined 6.4% since the earnings release on Feb. 27, as the 2025 guidance was weak.GDOT has provided its 2025 guidance for total operating revenues to range between $1.85 and $1.90 billion. The midpoint of the guided range ($1.87 billion) is below the current Zacks Consensus Estimate of $1.89 billion.Adjusted earnings per share guidance is the band of $1.05-$1.20. The midpoint of the guided range ($1.13 per share) is lower than the current consensus estimate for earnings of $1.53 per share. The adjusted EBITDA is anticipated to be in the band of $145-$155 million.Green Dot Corporation Price, Consensus and EPS Surprise Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation QuoteQuarterly earnings per share (excluding 31 cents from non-recurring items) of 40 cents outpaced the consensus estimate by 5.3% and improved more than 100% from the year-ago quarter. Revenues of $451.7 million beat the Zacks Consensus Estimate by 7% and increased 23.4% on a year-over-year basis.The company’s shares have declined 5.5% in the past year, outperforming the industry and the Zacks S&P 500 Composite’s growth of 19.6% and 17.1%, respectively.Image Source: Zacks Investment ResearchGreen Dot’s Segmental RevenuesB2B Services revenues increased 41% in the fourth quarter of 2024 to $312.1 million. This segment’s revenue growth was fueled by a BaaS partner and stability across the BaaS portfolio. Money Movement Services’ revenues improved 1% from the year-ago quarter to $29.7 million. Growth was impacted by a slight dip in Money Processing, while Tax Processing saw revenue growth. Third-party volumes, up by double digits and now constituting 70% of transactions, also boosted performance.The Consumer Services segment’s revenues amounted to $107.2 million, down 4% on a year-over-year basis. Declines continue to remain largely driven by secular headwinds in the Retail channel, partially offset by the impact of the recent launch of PLS.GDOT’s Key MetricsGDOT’s gross dollar volume increased 34% from the year-ago quarter to $35.3 billion. Purchase volume fell 2% year over year to $5.6 billion. The company ended the quarter with $3.7 million active accounts, down 3% on a year-over-year basis.Green Dot’s Operating ResultsAdjusted EBITDA totaled $43.8 million, increasing 70% on a year-over-year basis. The adjusted EBITDA margin plummeted 259 basis points to 9.7%.Balance Sheet & Cash Flow of GDOTGreen Dot exited the fourth quarter with unrestricted cash and cash equivalent balance of $1.6 billion compared with $682.3 million in the fourth quarter of 2023. GDOT had no long-term debt. It generated $81.4 million of cash from operating activities. The company’s capital expenditure was $109.3 million.Green Dot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Snapshot of GDOT’s PeersIQVIA Holdings Analytics Inc. IQV reported impressive fourth-quarter 2024 results.IQV’s adjusted earnings were $3.12 per share, outpacing the Zacks Consensus Estimate marginally and rising 9.9% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by a slight margin and grew 2.3% from the year-ago quarter.TransUnion TRU posted impressive fourth-quarter 2024 results.TRU’s quarterly adjusted earnings (adjusting 63 cents from non-recurring items) of 97 cents per share surpassed the consensus mark by 1% and increased 21.3% on a year-over-year basis. Total revenues of $1 billion outpaced the consensus mark by a slight margin and rose 8.7% from the year-ago quarter.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Green Dot Corporation (GDOT): Free Stock Analysis Report TransUnion (TRU): Free Stock Analysis Report IQVIA Holdings Inc. (IQV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks