Why Shift4 Payments Stock Is Soaring Today

Shift4 Payments, Inc FOUR reported third-quarter FY23 gross revenue growth of 23% year-on-year to $675.4 million, beating the consensus of $$703.3 million. Adjusted EPS of $0.82 beat the consensus of $0.69.

Payments-based revenue of the American payment processing company improved from $509.0 million a year ago to $626.9 million.

Subscription revenue was $48.5 million, up from $38.3 million a year ago.

Gross revenue minus network fees improved to $243 million vs. $196.7 million a year ago, up by 24% Y/Y.

End-to-end payment volume climbed 36% Y/Y to $27.9 billion. Adjusted EBITDA improved 46% Y/Y to $124.5 million. The margin expanded by 800 bps to 51%.

Outlook: Shift4 revised FY23 gross revenue guidance to $2.60 billion - $2.63 billion (prior $2.60 billion - $2.70 billion) versus the consensus of $2.67 billion.

Shift4 revised FY23 gross revenue minus network fees to $945 million - $960 million (prior $945 million - $980 million).

Shift4 expects Q4 gross revenue of $741 million - $766 million versus the consensus of $778.28 million. 

Shift4 expects Q4 gross revenue minus network fees of $274 million - $289 million. 

Price Action: FOUR shares traded lower by 13.40% at $53.95 on the last check Wednesday.