Los Angeles Business Journal

Mixed Quarter at Green Dot Causes Shares to Decline

By Deborah Crowe Originally published January 26, 2012 at 3:03 p.m., updated January 27, 2012 at 10:35 a.m.

Shares of Green Dot Corp. fell 6 percent on Friday, a day after the prepaid debit card issuer reported fourth quarter revenue below Wall Street expectations.

After the markets closed on Thursday, the Monrovia company reported net income of more than $14 million (33 cents a share), compared with $7.9 million (19 cents) in the same period a year earlier. Net operating revenue rose 30 percent to more than $120 million.

Adjusted for one-time items, profit was 40 cents a share. Analysts on average expected adjusted earnings of 40 cents a share on revenue of $127 million.

Earlier in the day, Green Dot announced a deal with the AARP Foundation to issue a branded prepaid MasterCard starting next month. It said the affinity card will be marketed to people on Social Security and sold both online and at Walgreen Co. stores.

Shares were down $2.03, or 6.4 percent, to $29.91 in Friday midday trading n the New York Stock Exchange.