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Green Dot's (GDOT) Q4 Earnings & Revenues Beat Estimates

Green Dot Corporation GDOT reported strong fourth-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate. In spite of better-than-expected results, shares of the company declined 2.2% since the earnings release.

Quarterly adjusted earnings (excluding 76 cents from non-recurring items) of 31 cents beat the consensus estimate by 93.8% and surged more than 100% on a year-over-year basis. Non-GAAP operating revenues of $274.5 million surpassed the consensus mark by 7.6% and increased 10.1% year over year.

Shares of the company have surged 50.9% in the past year compared with 12.2% rise of the industry it belongs to.

Segmental Revenues

The Account Services segment’s non-GAAP operating revenues came in at $233.7 million, up 23.2% from the year-ago quarter’s levels. The Processing and Settlement Services segment’s non-GAAP operating revenues of $43.1 million fell 22.3% year over year

Key Metrics

Gross dollar volume climbed 35.4% year over year to $14.3 billion. Gross dollar volume from direct deposit sources increased 23% year over year to $8.8 billion. Purchase volume rose 9% from the prior-year quarter’s levels to $6.9 billion. The company ended the fourth quarter with 5.5 million active accounts (up 8.1%) and 11.3 million cash transfers (down 6.5% year over year). The number of tax refunds processed was 0.11 million, up 57.1% year over year.

Operating Results

Adjusted EBITDA of $34.8 million increased 59% on a year-over-year basis. Adjusted EBITDA margin of 12.7% was up from the year-ago quarter’s level of 9.2%.

Green Dot Corporation Price, Consensus and EPS Surprise

 

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

 

Balance Sheet

Green Dot exited the quarter with cash, cash equivalents and restricted cash balance of $1.5 billion compared with the $2.1 billion witnessed at the end of the prior quarter. The company had no long-term debt.
The company generated $10.3 million of cash from operating activities and capex was $15.1 million.

2021 Guidance

The company expects 2021 non-GAAP total operating revenues in the range of $1.23-$1.25 billion, which suggests 3% year-over-year increase at the mid-point.  

Non-GAAP EPS is expected to be between $2.06 and $2.15, marking no changes year over year. The midpoint ($2.10) of which is lower than the consensus estimate of $2.19. 

Adjusted EBITDA is anticipated between $210 million and $217 million, which calls for 4% year-over-year increase at the mid-point.

Currently, Green Dot carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Rollins’ ROL fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago quarter’s figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and rose 6% year over year.

IHS Markit’s INFO fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter’s on a reported basis.

Automatic Data Processing’s ADP second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and moved up 0.7% year over year.

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Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
 
Green Dot Corporation (GDOT): Free Stock Analysis Report
 
Rollins, Inc. (ROL): Free Stock Analysis Report
 
IHS Markit Ltd. (INFO): Free Stock Analysis Report
 
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