What's Going On With Paysafe Stock Today?
Portfolio Pulse from Nabaparna Bhattacharya
Paysafe Limited (NYSE:PSFE) reported Q4 earnings with adjusted EPS of 66 cents, surpassing the 16 cents estimate, and revenue of $414.54 million, slightly above the $413.575 million forecast. Sales grew 8% YoY, with notable increases in the Merchant Solutions and Digital Wallets segments. Adjusted EBITDA rose 13% to $121.7 million, and adjusted net income increased 23% to $40.9 million. However, despite these positive results, PSFE shares dropped 15.5% to $12.02. The company forecasts FY24 revenue of $1.688 billion-$1.712 billion and adjusted EBITDA of $473 million-$488 million.
March 07, 2024 | 4:53 pm
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NEGATIVE IMPACT
Paysafe exceeded Q4 earnings and revenue expectations, showing significant growth in its Merchant Solutions and Digital Wallets segments. Despite these positive results, PSFE shares fell 15.5% to $12.02.
Paysafe's stock price decline despite surpassing earnings and revenue forecasts could be attributed to market reactions to its FY24 revenue outlook, which, while within estimates, may have disappointed some investors expecting more robust growth projections. Additionally, the significant level of debt might concern investors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100