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Green Dot Corp Up 2.39% To $9.00 After Earnings Miss

Wednesday, February 28, 2024 01:28 PM | InvestorsObserver Analysts

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Green Dot Corp Up 2.39% To $9.00 After Earnings Miss

Green Dot Corporation (GDOT) missed earnings estimates for Q4 2023 this afternoon.

The consensus among analysts for Green Dot Corp was for an earnings per share (EPS) of $0.17. The firm failed to meet those projections, reporting an EPS of $0.14, a negative surprise of $0.03 (-18%). Profits fell 59% year-over-year after reporting an EPS of $0.34 in its year-ago quarter. The negative growth rate signals that the Financial Services company isn't performing well amid current economic conditions.

Consensus estimates for Green Dot Corp revenue averaged out to $351.9 million, with the business managing to beat those expectations with reported fourth-quarter revenue of $361.7 million. The $9.8 million (3%) positive revenue surprise led to 7% growth year-over-year as the firm reported revenue of $336.6 million in its year-ago quarter. The lower earnings growth compared to revenue points to Green Dot Corp not being able to improve its profit margin.

The stock is up 2.39% to $9.00 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Green Dot Corp has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 8, putting Green Dot Corp in the bottom 25% of stocks. The firm set a 52-week low on November 10, 2023 at $7.3 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.

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