Shift4 Payments early Tuesday reported January-quarter earnings and revenue that topped estimates. Revenue guidance for Shift4 stock came in above Wall Street's targets. FOUR stock vaulted on the news.
Shift4 earnings for its fiscal fourth quarter jumped 480% from a year earlier to an adjusted 47 cents per share. Revenue rose 36% to $199.4 million.
A year earlier, the digital payment processor earned 8 cents a share on sales of $147 million. Shift4 stock analysts had projected earnings of 37 cents a share on sales of $198 million for the period ended Jan. 31.
For fiscal 2024, Shift4 said it expects revenue of $935 million at the midpoint of guidance versus estimates of $925.5 million.
"For this year and next, we expect FOUR's revenue and earnings growth to continue to improve driven by international expansion, new verticals, continued conversion of gateway customers to end-to-end payments volume, traction with larger merchants and share gains with Venue Next and SkyTab," Evercore ISI analyst David Togut said in a note to clients.
Shift4 Stock: Europe Reviewing Acquisition
Shift4 stock launched 13% higher to close at 64.50 on the stock market today, signaling a move back above the 50-day moving average.
European regulators are still reviewing Shift4's acquisition of Finaro.
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.
Shift4 stock had advanced nearly 2% in 2023 before the earnings release.
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