Payment processing company Shift4 Payments (NYSE:FOUR) will be announcing earnings results this Thursday morning. Here’s what to look for.
Shift4 met analysts’ revenue expectations last quarter, reporting revenues of $1.19 billion, up 34% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance meeting analysts’ expectations.
Is Shift4 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Shift4’s revenue to grow 28.1% year on year, improving from the 19.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shift4 has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Shift4’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Jack Henry delivered year-on-year revenue growth of 7%, beating analysts’ expectations by 1.3%, and Fiserv reported a revenue decline of 2.4%, falling short of estimates by 1.2%.
Read our full analysis of Jack Henry’s results here and Fiserv’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 8% on average over the last month. Shift4 is down 2.1% during the same time and is heading into earnings with an average analyst price target of $63.48 (compared to the current share price of $41.35).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.