Shift4 Payments Misses Revenue Estimates In Q3, Lowers Payment Volume Guidance As Stock Drops

Shift4 Payments, Inc FOUR reported fiscal third-quarter 2024 gross revenue growth of 35% year-on-year to $909.20 million, missing the analyst consensus estimate of $971.35 million. 

The payment processing company's adjusted EPS of $1.04 missed the analyst consensus estimate of $1.07. The stock tanked after the print.

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Payments-based revenue improved from $626.9 million a year ago to $806.8 million. Subscription revenue was $102.4 million, up from $48.5 million a year ago.

Gross revenue minus network fees improved to $365.1 million vs. $243.0 million a year ago, up by 50% year-over-year.

End-to-end payment volume climbed 56% year-over-year to $43.5 billion. Adjusted EBITDA improved 51% year-over-year to $187.4 million. The margin remained firm at 51%.

Fiscal 2024 Outlook: Shift4 expects gross revenue minus network fees outlook of $1.35 billion–$1.36 billion (prior $1.35 billion–$1.38 billion).

The company expects end-to-end payment volume of $164 billion–$166 billion (prior $167 billion–$172 billion).

It projects an adjusted EBITDA of $677 million–$688 million (prior $662 million–$689 million).

Shift4 Payments stock surged over 43% year-to-date.

Last week, Susquehanna analyst James Friedman maintained Shift4 Payments with a Positive and raised the price target from $97 to $105.

Price Action: FOUR stock is down 9.26% at $95.20 premarket at the last check Tuesday.

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