Payment processing company Shift4 Payments (NYSE:FOUR) will be reporting results this Thursday before market hours. Here’s what to expect.
Shift4 beat analysts’ revenue expectations last quarter, reporting revenues of $1.12 billion, up 32.1% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly.
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 28.8% year on year, improving from the 16.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. EVERTEC delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 4.4%, and Paymentus reported revenues up 28.8%, topping estimates by 4.3%. Paymentus traded up 28.9% following the results.
Read our full analysis of EVERTEC’s results here and Paymentus’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 6.5% on average over the last month. Shift4 is up 5.6% during the same time and is heading into earnings with an average analyst price target of $60.86 (compared to the current share price of $54.28).
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