Group 1 - Shift4 Payments (FOUR) is expected to report quarterly earnings of $0.71 per share, reflecting a 31.5% increase year-over-year [1] - Analysts forecast revenues of $347.81 million, indicating a year-over-year increase of 31.9% [1] - The consensus EPS estimate has been revised 5% lower over the last 30 days, showing a reevaluation of initial estimates by analysts [1][2] Group 2 - Analysts estimate 'Gross Revenue- Subscription and other revenues' to reach $92.56 million, representing a 77% increase from the previous year [4] - 'Gross Revenue- Payments-based revenue' is expected to be $797.60 million, indicating a year-over-year change of 21.8% [4] - The average prediction for 'End-to-End Payment Volume' is $44.53 billion, up from $33.40 billion reported in the same quarter last year [5] Group 3 - Shift4 Payments shares have decreased by 5.1% in the past month, compared to a 4.3% decline in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Core Insights - The article compares two stocks in the Financial Transaction Services sector: PagSeguro Digital Ltd. (PAGS) and Shift4 Payments (FOUR) to determine which is more attractive to value investors [1] Valuation Metrics - PAGS has a forward P/E ratio of 6.85, while FOUR has a forward P/E of 16.18 [5] - PAGS has a PEG ratio of 0.61, and FOUR has a PEG ratio of 0.62, indicating similar expected earnings growth rates [5] - PAGS has a P/B ratio of 1.03, compared to FOUR's P/B ratio of 6.72, suggesting PAGS is more undervalued relative to its book value [6] Analyst Outlook - PAGS currently holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to FOUR, which has a Zacks Rank of 3 (Hold) [3] - PAGS has a Value grade of B, while FOUR has a Value grade of C, further supporting PAGS as the superior value option [6]

Core Viewpoint - The current stock market correction presents a unique opportunity to invest in undervalued companies, with several stocks identified as particularly attractive buys during this period [1][19]. Group 1: Lyft - Lyft's stock has decreased over 40% from its 52-week highs, primarily due to competitive concerns in the ride-sharing market [3]. - The company reported record metrics with 24.7 million active riders and nearly 219 million rides in 2024, reflecting a 15% year-over-year increase [3]. - Lyft achieved positive free cash flow of $766 million for 2024, resulting in a low valuation of 6 times its free cash flow [4]. - Expectations for 2025 include further revenue growth and improved margins, particularly from its advertising business [5]. Group 2: Shift4 Payments - Shift4's stock has declined 15% following leadership changes and a $1.5 billion acquisition, raising investor concerns [6]. - The company reported nearly $48 billion in payment volume for Q4 2024, a sevenfold increase from Q4 2020 [7]. - Shift4 anticipates over 20% top-line growth for 2025 and has a net income of nearly $300 million for 2024, trading at a P/E ratio of 28, its lowest ever [8]. Group 3: Comfort Systems USA - Comfort Systems' stock has increased nearly 1,700% over the past decade but is currently down nearly 40% from its all-time high [9]. - The company is well-positioned for growth due to its services in data centers and semiconductor manufacturing, with a backlog of $6 billion, up 16% year-over-year [11]. - The global AI data center market is projected to grow at nearly 26% annually through 2032, benefiting Comfort Systems [11]. Group 4: Crocs - Crocs stock is trading at just 6 times its earnings, significantly lower than the S&P 500's 29 times [12]. - The company reported a modest revenue growth of 3.5% in 2024, with management expecting about 2% growth in 2025 [13]. - Crocs has authorized a $1.3 billion stock buyback, representing over 20% of outstanding shares, and has repaid over $300 million in debt [14]. Group 5: Airbnb - Airbnb's stock is over 40% below its all-time high from 2021, despite strong business fundamentals [15]. - The company achieved record revenue of $11.1 billion in 2024, a 12% increase year-over-year, and generated free cash flow of $4.5 billion with a 40% margin [16][17]. - Management plans to invest $200 million to $250 million in new business ideas, indicating potential for future growth [17][18].

Business Operations and Revenue Model - Shift4 processed billions of transactions annually for hundreds of thousands of businesses, establishing itself as a leading independent provider of software and payment processing solutions in the U.S.[25] - The majority of Shift4's revenue is derived from processing fees, charged as a percentage of end-to-end payment volume and/or as a fee per transaction, with no single merchant accounting for more than 3% of revenue in recent years[30] - Shift4's revenue model is predominantly recurring, with significant contributions from subscription revenue for licensing its POS software and business intelligence tools[30] - The company aims to increase payment volume processed through its integrated platform across diverse verticals, including restaurants and e-commerce[47] - Shift4 Payments reported a significant increase in revenue, achieving $500 million in Q3 2023, representing a 25% year-over-year growth[101] - Shift4 Payments anticipates continued growth, projecting revenue to reach between $2 billion and $2.2 billion for the full year 2024, indicating a growth rate of approximately 20%[101] Technology and Innovation - The payments platform supports multiple payment types, including credit, debit, contactless cards, and alternative payment methods like Apple Pay and Google Pay, ensuring flexibility for merchants[33] - Shift4's proprietary gateway integrates with over 550 software suites, enabling connectivity with major payment processors and enhancing security features to protect consumer card data[34] - Shift4's technology solutions are designed to streamline business operations and drive growth through strong consumer engagement and rich transaction-level data[35] - The company focuses on innovation and product development, leveraging an extensive library of intellectual property to create scalable technology solutions[28] - Shift4's technology solutions include SkyTab POS, SkyTab Mobile, and Lighthouse, aimed at improving operational efficiency and customer engagement[37] - Shift4 Payments is investing in new technology, including enhancements to its payment processing platform, which is expected to improve transaction speed by 15%[101] Market Expansion and Strategic Partnerships - The company is strategically expanding its market presence and enhancing its service offerings through partnerships with independent software vendors and value-added resellers[29] - In 2023, the company acquired Credorax, Inc. (operating as Finaro) to support international expansion, particularly in Europe and the UK[50] - The company is focused on international expansion and anticipates growth in its market position, with a strategy to enhance its service offerings[15] - Shift4 Payments is exploring potential acquisitions to bolster its service offerings and expand its technological capabilities, with a target of completing at least one acquisition by the end of 2024[101] - The company has initiated strategic partnerships with major players in the e-commerce space, which is projected to increase its customer base by 40% over the next year[101] Customer Experience and Support - The company aims to simplify commerce for merchants by providing an integrated solution that combines hardware, software, and payment processing[27] - The merchant onboarding process allows for activation within minutes via an online portal, with complex merchants typically onboarded within 24 hours[44] - The company provides a full curriculum of training materials to merchants, enhancing their operational capabilities[44] - The company provides 24/7 merchant support, emphasizing first-call resolution to enhance operational efficiency[51] - Shift4's operations infrastructure leverages over 30 years of experience in the hospitality sector to deliver high-quality customer experiences[42] Employee Engagement and Corporate Culture - As of December 31, 2024, Shift4's workforce included approximately 4,000 employees, with 800 employees added through acquisitions completed in 2024[75] - Shift4's compensation philosophy emphasizes equity and performance-based rewards, including a 401(k) with 100% matching up to 4% of salary in the U.S.[80] - In 2024, over 2,500 employees voluntarily engaged in learning opportunities, completing approximately 23,000 courses[79] - The appointment of Shift4's first Chief Human Resources Officer in 2024 reflects a strategic enhancement of the human capital governance structure[76] - Shift4's employee engagement initiatives include the Top Gun Employee Recognition Program, celebrating top performers and driving retention[84] Compliance and Risk Management - The company is subject to various federal, state, and international laws prohibiting unfair or deceptive trade practices, which could impact its business operations[70] - The company is subject to GDPR penalties for non-compliance, which can reach up to EUR 20 million or 4% of global annual turnover[69] - The company has policies and controls in place to comply with anti-money laundering laws and regulations in various jurisdictions, including the U.S. and EU[71] - The company’s risk management operations monitor merchant accounts continuously to minimize losses associated with fraud and default[51] Financial Performance and Projections - The company processed over 200 million transactions in the last quarter, reflecting a 30% increase compared to the same period last year[101] - The company reported a net income of $50 million for Q3 2023, a 10% increase from the previous quarter, showcasing improved profitability[101] - Shift4 Payments is committed to enhancing its cybersecurity measures, with a planned investment of $10 million in 2024 to safeguard customer data[101] Governance and Leadership - Jared Isaacman has served as the CEO and Chairman of Shift4 Payments since its formation, and he is also the founder of Shift4 Payments, LLC[91] - Nancy Disman has been the CFO since August 2022, previously serving as CFO and Chief Administrative Officer at Intrado Corporation[93] - Shift4 Payments is committed to enhancing its governance practices through experienced board members with diverse backgrounds in finance and technology[15] - The company is preparing for potential executive transitions and succession planning to ensure leadership continuity[15]

Financial Data and Key Metrics Changes - End-to-end payment volumes increased 49% year-over-year to $47.9 billion [8] - Gross revenue less network fees increased 50% to $405 million [9] - Adjusted EBITDA increased 51% to $205.9 million [9] - Adjusted free cash flow increased 78% to $134 million [9] - Year-end net leverage was 2.5 times [11] Business Line Data and Key Metrics Changes - Subscription and other revenue was $115 million in Q4, up 100% compared to the same period last year [46] - Unified commerce platform saw Q4 year-over-year volumes up 660% and calendar year volumes up 319% [25] - SkyTab installations surpassed the initial goal of 30,000 for 2024 [14] Market Data and Key Metrics Changes - International expansion included processing across Latin America and plans to launch in four to six additional countries [31] - Significant growth in the non-profit sector with record volumes [25] Company Strategy and Development Direction - The acquisition of Global Blue for approximately $2.5 billion aims to enhance payment capabilities and unlock revenue synergies [36][38] - Focus on building a unified commerce platform to streamline payment processes globally [22][29] - Strategy to follow strategic customers into new international markets [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing midterm guidance despite economic challenges [11] - Anticipated adjusted EBITDA margins of approximately 45% for Q1, aligning with historical trends [51] - Guidance for 2025 includes volume between $200 billion and $220 billion, representing 21% to 33% year-over-year growth [51] Other Important Information - GAAP net income for Q4 was $139 million, with GAAP diluted EPS at $1.44 [49] - Company repurchased over one million shares for $110 million, leaving $350 million of capacity available [48] Q&A Session Summary - No questions were entertained during the call as it was followed by an Investor Day event [6][53]

For the quarter ended December 2024, Shift4 Payments (FOUR) reported revenue of $405 million, up 50.4% over the same period last year. EPS came in at $1.35, compared to $0.76 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $405.41 million, representing a surprise of -0.10%. The company delivered an EPS surprise of +16.38%, with the consensus EPS estimate being $1.16.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Shift4 Payments (FOUR) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.38%. A quarter ago, it was expected that this company would post earnings of $1.10 per share when it actually produced earnings of $1.04, delivering a surprise of -5.45%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - End-to-end payment volumes increased by 49% year-over-year to $47.9 billion [6] - Gross revenue less network fees rose by 50% to $405 million [6] - Adjusted EBITDA increased by 51% to $205.9 million [6] - Adjusted free cash flow surged by 78% to $134 million [6] - Full year adjusted free cash flow reached $399 million, up 46% compared to the previous year [30] Business Line Data and Key Metrics Changes - Subscription and other revenue in Q4 was $115 million, up 100% year-over-year [29] - Adjusted EBITDA margins for Q4 were 51.5%, with full year margins at 53% [29] - Unified commerce platform saw Q4 year-over-year volumes up 660% and calendar year volumes up 319% [17] Market Data and Key Metrics Changes - The company is expanding its international presence, processing payments across Latin America and planning to launch in four to six additional countries [21] - The company is now processing payments for various international restaurants and hospitality venues, indicating strong market penetration [9][11] Company Strategy and Development Direction - The acquisition of Global Blue for approximately $2.5 billion aims to enhance the company's payment capabilities and expand its market reach [24] - The company is focused on building a unified commerce platform that integrates various payment solutions for merchants [16] - The strategy includes leveraging existing relationships with major fintech companies like Ant International and Tencent to enhance e-commerce opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing midterm guidance despite economic challenges such as inflation and rising interest rates [7] - The company anticipates strong growth in 2025, with guidance excluding the Global Blue impact indicating significant year-over-year growth across key metrics [33] - Management emphasized the importance of maintaining operational efficiency to generate exceptional cash flow without sacrificing growth [30] Other Important Information - The company repurchased over 1 million shares for $110 million, leaving approximately $350 million of capacity available under its current program [31] - The company plans to integrate crypto payment capabilities across its products, positioning itself as a leader in this emerging market [19] Q&A Session Summary - No questions were entertained during the call as the focus was on the Investor Day event [5]

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]