Pasadena Banking-Tech Provider Green Dot Slumps After Revising Outlook Lower

Published : Tuesday, August 13, 2019 | 6:17 AM

Pasadena-based Green Dot Corporation last Thursday reportedly lost two-fifths of its market value after the banking-technology and bank-holding company revised its outlook lower, according to a report by TheStreet.com, which analyzes financial markets.

Green Dot’s stock was off 42 percent at $27.42, the report showed.

In the second quarter, the Pasadena company on a GAAP basis earned 64 cents a share, 16 percent above the 55 cents in the year-earlier quarter. Revenue rose 5.5 percent to $278.3 million.

The latest adjusted numbers for Green Dot were 90 cents a share of earnings on $265 million of revenue, according to the report.

A survey of analysts by FactSet produced consensus estimates for the quarter of 63 cents a share of earnings for Green Dot on $265 million of revenue. However, for the third quarter, the company expects to earn an adjusted two cents a share against the FactSet estimate of 11 cents.

For the full year, Green Dot revised its expectations for adjusted earnings to a range of $2.71 to $2.77 a share, down from its previous guidance range of $2.82 to $2.91. The latest estimate at the midpoint would be a 17 percent decline from a year earlier, TheStreet.com said in the analysis.

Green Dot now expects full-year adjusted revenue at $1.06 billion to $1.08 billion, up five percent at the midpoint. Its previous guidance was $1.11 billion to $1.13 billion.

The analysts surveyed by FactSet were looking for an adjusted $2.78 a share of profit on revenue of $1.08 billion.

Active accounts declined in the second quarter, the company said in a statement.

“We expect the trend of lower active accounts to continue into the third quarter, before starting to moderate in the fourth quarter,” Green Dot Chief Financial Officer Mark Shifke said.

New products and programs should lead the company back to active-account and related revenue growth in 2020, Shifke added.

To learn more about Green Dot Corporation, visit www.greendot.com.

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