Join        Login             Stock Quote

Green Dot Corporation (GDOT) Q3 Earnings Preview: Tricking Or Treating Shareholders On Halloween?

 October 29, 2013 02:35 PM

Green Dot Corporation (GDOT) will host a conference call to discuss third quarter 2013 financial results on Thursday, October 31, 2013 at 4:30pm ET. A press release with third quarter 2013 financial results will be issued after the market closes that same day.

Wall Street anticipates that the Business Services provider will make a profit of $0.21 per share for the quarter. iStock expects GDOT to top Wall Street's consensus number. The iEstimate is $0.22, too.

Green Dot operates as a technology-centric, pro-consumer bank holding company that provides personal banking for the masses. It offers prepaid debit card products and prepaid card reloading services in the United States, as well as mobile banking services with its GoBank mobile bank account offering.

[Related -Green Dot Corporation (GDOT) Q2 Earnings Preview: Costs Could Hurt Quarter]

It will be fascinating to see how Green Dot fares considering dueling research opinions. On October 19th, Janney Capital downgraded Green Dot to a "Sell" from "Neutral" rating. The firm says increased competition, specifically from American Express (AXP), and new entrants will make life more difficult for the business pre-paid card company. Janney believes GDOT is a $15 stock.

On the other hand, Piper Jaffray says nope, Green Dot's price target is $26. Earlier today, the research firm upgraded the stock to an "Overweight" from "Neutral" rating. Jaffray believes the recent price-pullback and concerns over competition are overdone.

They both can't be right – can they?

[Related -Stocks End Flat Amid Fed Uncertainty; Green Dot Corporation (GDOT) Jumps]

Green Dot has surpassed investors' expectation for the last four quarters; however, the magnitude of bullish surprises is trending downwards for the last three quarters.  Prior to its recent string of success, GDOT missed the mark, usually by a wide margin, eight consecutive quarters.

In the last four quarters, earnings drove the stock higher an average of 11.65% with a tight range of 9% to 13.4%. Prior to its recent run, shareholders weren't so lucky as the stock lost an average of 9.49% in the three days surrounding the previous eight quarterly checkups.

Being on the right side of the trade can be rewarding as you can see. Rather than flipping a coin to pick which research firm to go with, let's turn to Google Trends to see if search volume intensity is up or down for the keyword "Green Dot."

And web queries say… Piper Jaffray is the early favorite to be the winner. Year-over-year (YoY) search volume intensity increased 8.53% and 3.58% quarter-over-quarter (QoQ).  Last year GDOT earned $0.29 in Q3 and $0.33 last quarter (Q2 2013). If Google Trends translate, Green Dot will earn a lot more than the current $0.21 consensus.

Overall: Minus Piper Jaffray, sentiment for Green Dot Corporation (GDOT) is sour heading into their Thursday EPS announcement. Google Trends suggest YoY and QoQ improvement. If that's the case, history suggests GDOT will treat investors on Halloween.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.