As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the diversified financial services industry, including Euronet Worldwide (NASDAQ: EEFT) and its peers.

Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.

The 10 diversified financial services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

While some diversified financial services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

Euronet Worldwide (NASDAQ: EEFT)

Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.

Euronet Worldwide reported revenues of $1.15 billion, up 4.2% year on year. This print fell short of analysts’ expectations by 4.5%. Overall, it was a softer quarter for the company with a significant miss of analysts’ sales estimates.

“Euronet’s commitment to innovation and global expansion continues to drive our success with recent Ren deployments, Dandelion sales momentum and the pending acquisition of CoreCard – all accelerating our digital transformation. Through Dandelion, we’re enhancing Euronet’s global money network with stablecoin innovation — which will enable businesses and consumers to move value seamlessly between digital assets and local fiat currencies. Our on- and off-ramp capabilities will make stablecoins practical, connecting blockchain digital assets to real-world payments liquidity in over 200 countries.” said Michael J. Brown Euronet’s Chairman and Chief Executive Officer.

Euronet Worldwide delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 20.3% since reporting and currently trades at $70.69.

Is now the time to buy Euronet Worldwide? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Paymentus (NYSE: PAY)

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $310.7 million, up 34.2% year on year, outperforming analysts’ expectations by 10.7%. The business had a stunning quarter with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

Paymentus achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 29.9% since reporting. It currently trades at $37.16.

Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: NCR Atleos (NYSE: NATL)

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE: NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

NCR Atleos reported revenues of $1.12 billion, up 4.5% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 9.1% since the results and currently trades at $34.40.

Read our full analysis of NCR Atleos’s results here.

Western Union (NYSE: WU)

With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.

Western Union reported revenues of $1.03 billion, flat year on year. This print topped analysts’ expectations by 1%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

Western Union scored the highest full-year guidance raise among its peers. The stock is up 9.5% since reporting and currently trades at $8.92.

Read our full, actionable report on Western Union here, it’s free for active Edge members.

Corpay (NYSE: CPAY)

Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.

Corpay reported revenues of $1.17 billion, up 13.9% year on year. This result surpassed analysts’ expectations by 0.6%. Zooming out, it was a satisfactory quarter as it also produced full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EBITDA estimates.

The stock is up 4.8% since reporting and currently trades at $274.18.

Read our full, actionable report on Corpay here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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