Why Green Dot Corp. (GDOT) Is Down Today

NEW YORK (TheStreet) -- Green Dot Corp.  (GDOT) was falling 15.71% to $22.53 after the prepaid debit card provider reported that its fourth-quarter profits plummeted 90% thanks to higher expenses.

The company noted its fourth-quarter profit totaled $876,000, or 2 cents per share, down from $8.71 million, or 24 cents a share, in the same period one year earlier. Excluding items, Green Dot earned 18 cents a share, down from 31 cents a share one year earlier. Operating expenses rose 16% to $141.9 million. Operating revenue rose 3.7% to $142.3 million, while adjusted revenue was $144.9 million. Analysts expected earnings of 21 cents and revenue of $142.7 million.

Green Dot also reported guidance for the full year at a range of $1.22 to $1.28 a share on an adjusted operating revenue of $640 million to $650 million. Analysts polled by Thomson Reuters expected EPS of $1.43 and a revenue of $631.6 million.

TheStreet Ratings team rates GREEN DOT CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate GREEN DOT CORP (GDOT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

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