Here's Why Euronet Shares are Attracting Prudent Investors Now

Euronet Worldwide, Inc. EEFT is a global financial technology solutions and payments provider. It is well poised to grow on the back of increased demand for contactless payment solutions, strong transaction growth across its segments and strategic acquisitions. Shares of EEFT have risen 5.3% in the quarter-to-date period compared with the industry’s growth of 2%.

Headquartered in Leawood, KS, EEFT holds a market capitalization of $4.6 billion. The company offers payment and transaction processing and distribution solutions to financial institutions, retailers, consumers and service providers. Its forward 12-month P/E ratio of 10.18X is lower than the industry average of 21.41X.

Courtesy of solid prospects, EEFT currently carries a Zacks Rank #2 (Buy).

Where Do Estimates for EEFT Stand?

The Zacks Consensus Estimate for Euronet’s 2025 earnings is pegged at $9.84 per share and has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $4.3 billion for 2025, indicating 8.2% year-over-year growth. It beat earnings estimates in one of the past four quarters, met twice and missed once.

Euronet Worldwide, Inc. Price and EPS Surprise

Euronet Worldwide, Inc. price-eps-surprise | Euronet Worldwide, Inc. Quote

EEFT’s Growth Drivers

Euronet reported a 7% year-over-year revenue increase in the first quarter of 2025, driven by solid performances across its EFT Processing, epay and Money Transfer segments. Management forecasts adjusted earnings per share to rise between 12% and 16% on a year-over-year basis in 2025.

The EFT Processing segment continued to benefit from transaction growth, entry into new markets and the addition of access fees and interchange fees in certain markets. This segment processed 3,463 million transactions in the first quarter of 2025, marking a 38% increase from the prior-year figure. It launched operations in two additional countries — the Dominican Republic and Peru.

The epay segment experienced consistent momentum through the ongoing growth of digital branded payment and mobile sales. Meanwhile, the Money Transfer segment delivered strong results, fueled by increased cross-border transactions. The segments registered year-over-year increases of 19% and 10% in transactions processed, respectively, in first-quarter 2025.

Euronet's strategic initiatives reflect a strong focus on growth through partnerships, acquisitions and innovative product launches. The company has partnered with major firms to expand its network. The digital transactions of EEFT have been performing well over the past few quarters. Strategic growth drivers include its global presence, omnichannel capabilities with established brick-and-mortar and digital experiences, and its competitive stance for the total addressable market.

The company took a few initiatives, such as expanding its digital media content in Australia, including Uber, Netflix and Spotify. EEFT took various measures to boost its geographic extension of digital presence through its mobile application and real-money transfer. Its Money Transfer unit entered into a partnership with Visa to boost global money transfers.

Euronet’s financial position remains robust, with $1.4 billion in cash and cash equivalents as of March 31, 2025. In the first quarter of 2025, it repurchased $59.6 million worth of shares. With consistent revenue growth, increased cross-border transactions and a strong balance sheet, the company remains well-positioned for sustained success in the evolving digital payments landscape.

Risks for EEFT Stock

There are some factors, however, that investors should keep a careful eye on.

The company continues to invest in its ATM network. Yet, the rapid digitization of economies is expected to lower the demand for ATM withdrawals by tourists. This will likely hurt Euronet's EFT segment in key markets. Its total debt to total capital, at the first quarter end, was 62.8%, higher than the industry average of 54.4%.

Other Key Picks

Some other top-ranked stocks in the broader finance space are StepStone Group Inc STEP, Hope Bancorp Inc HOPE and Acadian Asset Management Inc. AAMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for StepStone Group’s current-year earnings of $1.80 per share has witnessed two upward revisions in the past 60 days against none in the opposite direction. StepStone Group beat earnings estimates in three of the trailing four quarters and met one, with the average surprise being 20.9%. The consensus estimate for current-year revenues is pegged at $998.4 million, implying 3% year-over-year growth.

The Zacks Consensus Estimate for Hope Bancorp’s current-year earnings of 95 cents per share has witnessed three upward revisions in the past 60 days against no movement in the opposite direction. Hope Bancorp beat earnings estimates in two of the trailing four quarters, met once and missed once. The consensus estimate for current-year revenues is pegged at $515.9 million, calling for 8.6% year-over-year growth.

The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. In the past 60 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $560.8 million, calling for 10.9% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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