$GDOT has been beaten up pretty badly. The stock just hit new 52-week lows after disappointing 2020 guidance. But we think there's opportunity, especially after traders bought the dip on Friday and we got a green candle. The 52 week high is $86.46 after all, so $GDOT could be in the bargain bin for many.
Green Dot (NYSE:GDOT) plunges 18% after preliminary 2020 guidance discussed in its earnings call disappointed investors and analysts.
CFO Mark Shifke doesn't expect "to guide much more than flat on the top line and perhaps $65M lower year-over-year on adjusted EBITDA" when the company provides formal 2020 guidance on its February earnings call.
Cites combination of reduced interest income due to lower rates, about 150 basis point reduction associated with GDOT's renewal of its Walmart MoneyCard contract, higher SG&A expenses for its banking-as-a-service platform, and higher marketing expenses.
BTIG analyst Mark Palmer writes in a note that that implies FY2020 adjusted EBITDA of $175M-$180M vs. consensus of $273.5M.
He reiterates neutral recommendation.
Quant rating is Very Bearish; Sell-Side average rating is Bullish (5 Very Bullish, 2 Bullish, 9 Neutral).
$GDOT is attractive as it trades at just 11x earnings and 10x next year's earnings.
Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service’ platform. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.
As always, trade with caution and use protective stops.
Good luck to all!
Green Dot (NYSE:GDOT) plunges 18% after preliminary 2020 guidance discussed in its earnings call disappointed investors and analysts.
CFO Mark Shifke doesn't expect "to guide much more than flat on the top line and perhaps $65M lower year-over-year on adjusted EBITDA" when the company provides formal 2020 guidance on its February earnings call.
Cites combination of reduced interest income due to lower rates, about 150 basis point reduction associated with GDOT's renewal of its Walmart MoneyCard contract, higher SG&A expenses for its banking-as-a-service platform, and higher marketing expenses.
BTIG analyst Mark Palmer writes in a note that that implies FY2020 adjusted EBITDA of $175M-$180M vs. consensus of $273.5M.
He reiterates neutral recommendation.
Quant rating is Very Bearish; Sell-Side average rating is Bullish (5 Very Bullish, 2 Bullish, 9 Neutral).
$GDOT is attractive as it trades at just 11x earnings and 10x next year's earnings.
Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service’ platform. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.
As always, trade with caution and use protective stops.
Good luck to all!
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We are not financial advisors. Always conduct your own research and read our full disclaimer at insiderfinancial.com/disclaimer/