Wall Street analysts expect Shift4 Payments (FOUR) to post quarterly earnings of $1.16 per share in its upcoming report, which indicates a year-over-year increase of 52.6%. Revenues are expected to be $405.41 million, up 50.5% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company a ...

Financial Performance - Gross revenue for Q3 2024 reached $909.2 million, a 34.6% increase from $675.4 million in Q3 2023[14] - Net income attributable to Shift4 Payments, Inc. was $53.8 million in Q3 2024, compared to $32.6 million in Q3 2023, reflecting a 64.0% increase[14] - Comprehensive income attributable to Shift4 Payments, Inc. was $81.5 million in Q3 2024, up from $28.6 million in Q3 2023[15] - Income from operations for Q3 2024 was $80.4 million, a significant increase from $44.7 million in Q3 2023[14] - Basic net income per share for Class A was $0.78 in Q3 2024, compared to $0.56 in Q3 2023, representing a 39.3% increase[14] - Net income for the nine months ended September 30, 2024, was $155.2 million, compared to $103.7 million for the same period in 2023, representing a 49.8% increase[19] - Adjusted EBITDA for the nine months ended September 30, 2024, was $471.5 million, compared to $323.8 million in the prior year, reflecting improved operational performance[127] Assets and Liabilities - Total current assets increased to $2,094.6 million as of September 30, 2024, up from $1,153.3 million at December 31, 2023, representing an increase of 81.8%[13] - Total liabilities increased to $4,001.1 million from $2,519.4 million, reflecting a rise of 58.7%[13] - Long-term debt surged to $2,838.0 million, up from $1,750.2 million, indicating an increase of 62.1%[13] - Total assets reached $5,048.9 million, up from $3,387.8 million, representing a growth of 48.9%[13] - Cash and cash equivalents rose significantly to $1,426.4 million from $455.0 million, marking a growth of 213.5%[13] Equity and Stock - Total stockholders' equity attributable to Shift4 Payments, Inc. grew to $811.8 million from $653.3 million, a rise of 24.2%[13] - The company reported a total of 66,791,329 Class A shares outstanding for Q3 2024, an increase from 56,537,008 shares in Q3 2023[14] - The company authorized a new stock repurchase program in May 2024, allowing for the repurchase of up to $500 million of Class A common stock through December 31, 2025[83] - During the nine months ended September 30, 2024, the Company repurchased 528,888 shares for $35.9 million at an average price of $67.77 per share, leaving $464.1 million available under the repurchase program[83] Revenue Streams - Payments-based revenue of $806.8 million for the three months ended September 30, 2024, up from $626.9 million for the same period in 2023, representing a growth of 28.7%[47] - Total revenue for the nine months ended September 30, 2024, was $2,443.6 million, compared to $1,859.4 million for the same period in 2023, indicating an increase of about 31.3%[47] - Subscription and other revenues surged by $53.9 million, or 111%, primarily due to recent acquisitions and higher SaaS revenue from SkyTab solutions[106] Expenses and Costs - Total cost of sales for Q3 2024 was $641.9 million, up from $495.1 million in Q3 2023, indicating a 29.6% increase[14] - General and administrative expenses increased to $118.2 million in Q3 2024 from $76.3 million in Q3 2023, a rise of 55.0%[14] - Interest expense for Q3 2024 was $18.3 million, up from $8.0 million in Q3 2023, reflecting a 128.8% increase[14] - Depreciation and amortization expense increased by $31.9 million, or 29%, primarily from amortization of intangible assets from acquisitions[121] Acquisitions and Investments - The company acquired Credorax, Inc. d/b/a Finaro in the fourth quarter of 2023, expanding its payment processing services into Europe and the U.K.[25] - The Company acquired a majority stake in Vectron Systems AG for a total purchase consideration of $62.7 million, net of cash acquired, and as of September 30, 2024, owned approximately 75% of Vectron[36] - The acquisition of Revel Systems, Inc. was completed for $245.3 million, net of cash acquired, enhancing the Company's presence in the restaurant and retail markets[41] Tax and Compliance - The Company's effective tax rate was (135)% for the three months ended September 30, 2024, significantly different from the U.S. federal statutory income tax rate of 21% due to a discrete tax benefit of $283.8 million[73] - The Company has $7.5 million of uncertain tax positions recognized as of September 30, 2024, up from $4.7 million as of December 31, 2023[74] Cash Flow - Net cash provided by operating activities increased to $354.9 million from $283.0 million, reflecting a 25.3% growth year-over-year[19] - Net cash used in investing activities increased to $435.2 million for the nine months ended September 30, 2024, from $151.1 million in 2023, primarily due to a $269.6 million increase in cash paid for acquisitions[135] - Net cash provided by financing activities was $950.6 million for the nine months ended September 30, 2024, a significant increase from net cash used of $124.3 million in 2023[136] Legal and Regulatory Matters - The company has not established reserves for ongoing legal proceedings, as it cannot determine the probability of loss or estimate damages[81] - The consolidated actions against the Company allege violations of the Securities Exchange Act of 1934, with claims for unspecified damages[81] - The Company intends to defend against the legal claims vigorously, believing they are without merit[81]

Financial Data and Key Metrics Changes - Shift4 Payments reported total Q3 volume of $43 billion, a 56% year-over-year increase [52] - Gross revenue less network fees grew 50% to $365 million [52] - Adjusted EBITDA increased by 51% year-over-year to $187 million, with adjusted EBITDA margins at 51.3% [53] - Adjusted free cash flow was $111 million, up 46% compared to the previous year, representing a 59% free cash flow conversion [57] Business Line Data and Key Metrics Changes - The hospitality vertical saw significant new logo wins, including KSL Properties and a major Las Vegas casino operator [7][8] - Subscription and other revenue reached $102 million in Q3, up 111% year-over-year, driven by growth in SMB, SkyTab, and sports and entertainment [55] - The restaurant POS product, SkyTab, has installed over 55,000 systems since coming out of beta, exceeding the 2024 goal of 35,000 installations [16][69] Market Data and Key Metrics Changes - The backlog increased to approximately $33 billion, up from $25 billion in Q2, indicating strong sales momentum [41] - Same-store sales in restaurants experienced a decline of roughly 3% year-over-year, while hotels improved to flat year-over-year [40] - Sports and entertainment verticals showed record processing volumes, particularly during overlapping seasons [41] Company Strategy and Development Direction - The company aims to enhance its capital structure and has acquired Givex, adding 130,000 premium customers and a potential $300 billion in volume [10][33] - Shift4 is focusing on expanding its global e-commerce capabilities and has launched in four new African countries, with plans for further expansion [23][24] - The company is committed to maintaining profitable growth while pursuing strategic acquisitions to enhance its service offerings [36][50] Management's Comments on Operating Environment and Future Outlook - Management noted a softening in consumer spending, particularly in certain verticals, but expressed confidence in sustaining volume growth due to a strong backlog [11][41] - The company expects full-year organic gross revenue growth to exceed 25% and has raised guidance for Q4 based on strong performance [27][68] - Management emphasized the importance of operational efficiency and plans to improve margins through internal initiatives and AI investments [56][65] Other Important Information - The company repurchased approximately 289,000 shares for about $20 million, with a remaining capacity of approximately $460 million [59] - GAAP net income for Q3 was $72 million, with a diluted EPS of $0.74 [60] - The company recorded a non-cash income tax benefit due to the realization of tax benefits, reflecting strong growth since the IPO [63] Q&A Session Summary Question: Discussion on Q4 guidance and seasonal volume - Management acknowledged that Q4 has become more predictable due to the impact of sports and entertainment, suggesting that the $49 billion high end of guidance could serve as a baseline for future projections [80] Question: Building blocks for 2025 guidance - Management highlighted the importance of Vectron, Revel, and Givex opportunities, emphasizing that Q4 could be viewed as an average quarter for future volume expectations [79][80]

For the quarter ended September 2024, Shift4 Payments (FOUR) reported revenue of $365.1 million, up 50.3% over the same period last year. EPS came in at $1.04, compared to $0.82 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $369.07 million, representing a surprise of -1.08%. The company delivered an EPS surprise of -5.45%, with the consensus EPS estimate being $1.10.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Shift4 Payments (FOUR) came out with quarterly earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.45%. A quarter ago, it was expected that this company would post earnings of $0.91 per share when it actually produced earnings of $0.96, delivering a surprise of 5.49%.Over the last four quarters, the company h ...

Analysts on Wall Street project that Shift4 Payments (FOUR) will announce quarterly earnings of $1.11 per share in its forthcoming report, representing an increase of 35.4% year over year. Revenues are projected to reach $369.07 million, increasing 51.9% from the same quarter last year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over th ...

The market expects Shift4 Payments (FOUR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be r ...

Don't sleep on these 3 stocks heading into 2025.The leaves are falling, and the weather is getting cooler. You know what that means: It's time to start thinking about next year.We're running out of months in 2024, and investors are increasingly focused on what next year will bring and which stocks to buy now.With that in mind, let's turn our attention to three tech stocks that our Motley Fool contributors can't stop thinking about: Meta Platforms (META -0.07%), Shift4 (FOUR 0.12%), and Microsoft (MSFT 0.99% ...

Shift4 Payments (FOUR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Indiv ...

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Shift4 Payments (FOUR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question. Shift4 Payments is a member of our Business Services ...