Shift4 Payments early Tuesday reported third-quarter earnings and revenue that missed estimates while payment volume also came in below Wall Street's targets. Shift4 stock tumbled on the news.
Reported before the market open, Shift4 earnings climbed 27% from a year earlier to an adjusted $1.04 per share. Revenue rose 50% to $365.1 million.
A year earlier, the digital payment processor earned 82 cents a share on sales of $147 million. Shift4 stock analysts had projected earnings of $1.06 a share on sales of $371 million.
In addition, Shift4 reported earnings before interest, taxes, depreciation and amortization of $187.4 million, up 51%, slightly topping consensus EBITDA estimates of $185 million.
End-to-end payment volume from merchant customers climbed 56% to $43.5 billion, missing estimates of $46.24 billion.
"Although Shift4 delivered a mixed print we think it was more macro than micro, given the company's still significant exposure to discretionary consumer spending in hospitality," said Susquehanna analyst James Friedman in a report. "Trends in October sound more constructive."
Shift4 Stock: Technical Ratings
On the stock market today, Shift4 stock tumbled 7% to 97.31 in midday trading. Shift4 stock had advanced 40% in 2023 before the earnings release, with a strong gain since the Nov. 5 Election Day.
Allentown, Pa.-based Shift4 gets most of its revenue from customers in the hotel and restaurant industries as well as casinos. Aside from the hotel and restaurant industries, Shift4 has expanded into sports stadiums, airlines and charitable giving as well as food and beverage companies.
Shift4 competes with Clover, owned by Fiserv, as well as Square, owned by Block and Toast, among others.
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