Shift4 Surges In Subscription, Payments Revenue Despite Falling Short Of Q1 Expectations
Portfolio Pulse from Anusuya Lahiri
Shift4 Payments, Inc (NYSE:FOUR) reported a 29% year-on-year growth in fiscal Q1 2024 gross revenue to $707.4 million, missing analyst estimates of $755.6 million. Adjusted EPS was 54 cents, below the consensus of 62 cents. Payments-based revenue and subscription revenue saw significant increases. The company also saw a 50% increase in end-to-end payment volume and a 36% increase in adjusted EBITDA. Despite missing Q1 expectations, Shift4 reiterated its FY24 outlook, expecting significant growth in revenue and EBITDA. The company's stock rose 3.59% following the announcement. Analysts had previously anticipated Shift4 to benefit from a major settlement involving Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA).
May 09, 2024 | 3:39 pm
News sentiment analysis
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NEUTRAL IMPACT
Mastercard Inc was mentioned alongside Visa in a significant settlement expected to benefit Shift4 Payments.
Similar to Visa, Mastercard's mention in the context of benefiting Shift4 Payments does not directly indicate a short-term impact on its stock, based on the information available.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Visa Inc was mentioned in relation to a $30 billion settlement expected to benefit Shift4 Payments.
While the article mentions Visa in a positive context for Shift4, the direct short-term impact on Visa's stock is not clear from the information provided.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Shift4 Payments reported lower-than-expected Q1 earnings but showed strong growth in key revenue areas and reiterated a positive FY24 outlook.
Despite missing Q1 expectations, the significant growth in payments and subscription revenues, along with a positive FY24 outlook, likely contributed to the positive investor sentiment, leading to a 3.59% increase in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100