Green Dot Corp Down 36.78% To $7.46 After Earnings Miss

Green Dot Corp (GDOT) said after close Thursday that it earned $0.14 per share in quarter three 2023. The company reported earnings on an adjusted basis, so it may not be directly comparable to analyst estimates or prior periods.

On the revenue line, the company reported $348.6 million, beating estimates by $13.4 million.

In the same quarter a year ago, the company earned $0.44 per share on revenue of $337.2 million. The company reported revenue on an adjusted basis, so it may not be directly comparable to analyst estimates or prior periods.

The stock is down 36.78% to $7.46 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Hold which may get revised based on this new data.

Trading in the five days leading up to the report earned Green Dot Corp a Bearish Sentiment Rank from InvestorsObserver.

Green Dot Corp has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 13, putting Green Dot Corp in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $10.84 on October 27, 2023 and set a 52-week high on July 19, 2023 at $21.37.

Green Dot Corp is a financial technology company that provides financial services for consumers in the United States without good banking options. Through its Account Services segment, the company offers GoBank mobile checking and Visa- or Mastercard-branded prepaid debit cards, both reloadable and non-reloadable. Green Dot also supplies private-label reloadable cards for Wal-Mart. Account services revenue is generated through monthly maintenance fees, ATM fees, new card fees, and interchange fees. The company's Processing and Settlement Services segment generates revenue through service fees on debit card reloads and tax refund processing. The tax refund processing business earns fees when customers of third-party tax preparers choose to pay the preparer's fee through Green Dot's service.