- Needham & Company analyst Mayank Tandon downgraded Green Dot Corp (NYSE:GDOT) to Hold from Buy.
- The analyst sees a higher customer churn rate, loss of a few key BaaS partners and a weak macroeconomic environment as headwinds, despite better-than-expected Q1 2023 results.
- GDOT’s Q1 revenues of $412.4 million beat the consensus of $387.7 million, and adjusted EPS of $0.99 exceeded the analyst expectations of $0.80.
- Management reiterated the 2023 outlook for adjusted operating revenue at $1.376 billion-$1.462 billion (consensus: $1.41 billion) and adjusted EPS at $1.77 and $1.93 (consensus: $1.83).
- The company expects a higher attrition rate in consumer business due to the faster winding down of legacy brands compared to the increase in Go2Bank.
- Tandon believes guidance reiteration implies weaker expectations for the upcoming quarters, as the adjusted EPS outlook represents a decline of around 30% at the midpoint.
- The analyst reduced estimates for 2023 revenues and adjusted EPS to $1.410.9 billion (from $1.423.9 billion) and $1.79 (from $1.82), respectively.
- Price Action: GDOT shares are trading lower by 5.53% at $17.76 on the last check Monday.
DoorDash Adds Best Buy As First National Consumer Electronics Retailer On Marketplace
New nationwide partnership offers fast and convenient delivery of Best Buy's expansive selection of consumer electronic products just in time for the holidaysDoorDash (NASDAQ:DASH), the local commerce platform, today
