Euronet's Q2 Performance Mixed, Analyst Cuts Price Target to $134 Amid Acquisition of CoreCard

Oppenheimer has trimmed Euronet's (EEFT) price target to $134 from $137 and maintained an Outperform rating. The adjustment comes after Euronet's Q2 results showed a mixed performance, with the Money Transfer segment exceeding expectations, but the EFT segment falling short. The company's acquisition of CoreCard is expected to boost future growth prospects. Euronet's diverse product offerings and revenue growth make it well-positioned in the software industry.

Euronet Worldwide (EEFT) reported its Q2 2025 earnings, revealing a mixed performance with the Money Transfer segment exceeding expectations while the EFT segment fell short. The company's revenue for the quarter ended June 2025 was $1.07 billion, a year-over-year increase of 8.9%, but this figure missed the Zacks Consensus Estimate of $1.08 billion by -0.09% [1]. The EPS of $2.56 also fell short of the consensus estimate of $2.63, resulting in a negative surprise of -2.66% [1].

Key metrics showed varied performance:
- EFT Processing Segment: Revenue was $338.5 million, a 10.8% year-over-year increase, but it missed the three-analyst average estimate of $340.47 million [1].
- Epay Segment: Revenue was $280.1 million, a 7.4% increase year-over-year, but it was slightly below the three-analyst average estimate of $279.33 million [1].
- Money Transfer Segment: Revenue was $457.9 million, a 8.6% year-over-year increase, and it met the three-analyst average estimate of $456.77 million [1].

The company's stock experienced a slight pre-market increase of 1.01% following the earnings report, trading at $100.01 [2]. Oppenheimer has trimmed Euronet's price target to $134 from $137, maintaining an Outperform rating, reflecting the mixed performance and the potential boost from the CoreCard acquisition [3].

Euronet's acquisition of CoreCard, a leading credit card processing platform, is expected to enhance future growth prospects. The company also signed a significant REN deal with a major U.S. bank, further bolstering its digital strategy [2]. These deals position Euronet to continue its track record of double-digit earnings growth [2].

Despite the mixed Q2 results, Euronet maintains strong financial health, with robust profitability metrics and cash flow generation [2]. The company anticipates earnings growth of 12-16% for 2025, with the CoreCard acquisition expected to be EPS accretive in its first full year [2].

References:
[1] https://finance.yahoo.com/news/euronet-worldwide-eeft-q2-earnings-133011172.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-euronet-worldwide-q2-2025-misses-eps-forecast-stock-stable-93CH-4163997
[3] Oppenheimer's Research Report on Euronet Worldwide (EEFT), July 2025