Payoneer Global Inc. (PAYO) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.12%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.06, delivering no surprise.Over the last four quarters, the company has ...

Group 1 - PagSeguro Digital Ltd. (NYSE:PAGS) is considered one of the most undervalued fintech stocks, with expectations of a quarterly revenue of approximately $981.30 million and an EPS of $0.39 for fiscal Q4 2025 [1] - Bank of America Securities has reiterated a Buy rating on PAGS with a price target of $13, highlighting the strategic initiatives of the newly appointed CEO and CFO to significantly increase the company's loan book by 2029 [2] - The new management team brings retail banking expertise and has enhanced credit models and collection capabilities, while also utilizing AI to expedite credit underwriting processes [3] Group 2 - PagSeguro Digital Ltd. primarily serves consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil, focusing on financial services and digital payments [3]

Core Thesis - PagSeguro Digital Ltd. (PAGS) is viewed positively due to its strong historical growth, low valuation metrics, and potential upside from interest rate cuts, making it an attractive investment opportunity [1][2][3]. Financial Performance - PagSeguro has demonstrated impressive historical growth with a net income CAGR of 15% and revenue CAGR of 27% from 2018 to 2024 [2]. - The stock trades at a trailing P/E of 7.69 and a forward P/E of 6.98, indicating a significant margin of safety [1][2]. - The company maintains a robust cash position of approximately $1.8 billion, with a Basel Ratio of 30% and a return on average equity (ROAE) of around 14-15% [3]. Future Outlook - Management anticipates net income growth of 11-15% in 2025 and expects an EPS CAGR of over 16% and gross profit CAGR of over 10% through 2029 [3]. - A 1% decrease in Brazilian interest rates could potentially increase annual pre-tax profits by about $60 million, highlighting the sensitivity of profitability to interest rate changes [3]. Capital Returns - The company has been actively returning capital to shareholders through buybacks and dividends, with an expected total capital return yield of 16% in 2026 [3]. Competitive Landscape - PagSeguro faces competition from banks, fintechs, and Brazil's instant payment system, PIX, which may impact fee income and the demand for prepayment services [4]. - Despite a slight decline in market share in payment processing due to fee repricing, PagSeguro benefits from a broad service ecosystem and the strategic backing of UOL, which holds 85% of voting power [4]. Recent Performance - The stock has appreciated approximately 23.87% since a previous bullish thesis was published, indicating that the positive outlook remains valid [5].

Group 1 - Middle Coast Investing reported a strong performance in 2025, with the S&P 500 showing a 21.2% annualized return over the past three years, indicating signs of slowing growth [1] - In Q4 2025, the US Portfolios returned 2.7%, outperforming the S&P 500's return of 2.3%, while Core U.S. portfolios returned 1.9% [1] - The European Portfolios experienced a decline of -0.4% in the same quarter [1] Group 2 - PagSeguro Digital Ltd. (NYSE:PAGS) was highlighted as a key stock, closing at $10.13 per share on January 13, 2026, with a one-month return of 8.46% and a 52-week gain of 46.39% [2] - PagSeguro Digital Ltd. has a market capitalization of $2.957 billion [2] - The firm emphasized a strategy of diversifying from US holdings, indicating a focus on non-US stocks, with PagSeguro being a notable addition to the portfolio [3]

Core Insights - The analyst has over 10 years of experience researching more than 1000 companies across various sectors, including commodities and technology [1] - The focus has shifted from blogging to a value investing-oriented YouTube channel, emphasizing research on hundreds of companies [1] - The analyst shows a particular interest in metals and mining stocks, while also being knowledgeable in consumer discretionary, staples, REITs, and utilities [1]

Group 1 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, where hundreds of companies have been researched [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with consumer discretionary, staples, REITs, and utilities [1]

Core Insights - Deluxe (DLX) reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $0.92 per share, and showing an increase from $0.84 per share a year ago, resulting in an earnings surprise of +18.48% [1] - The company achieved revenues of $540.2 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.36% and up from $528.4 million year-over-year [2] - Deluxe has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise for the previous quarter was +23.94%, with actual earnings of $0.88 per share compared to an expected $0.71 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.94, with projected revenues of $513.1 million, while the estimate for the current fiscal year is $3.49 on $2.11 billion in revenues [7] Market Position - Deluxe shares have underperformed the market, losing about 19.3% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The Zacks Industry Rank places the Business - Office Products sector in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] Future Outlook - The sustainability of Deluxe's stock price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current Zacks Rank for Deluxe is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Core Insights - Global Payments Inc. (GPN) reported third-quarter 2025 adjusted earnings per share (EPS) of $3.26, exceeding the Zacks Consensus Estimate of $3.23, with a year-over-year increase of 12% [1][8] - Adjusted net revenues rose 3% year over year to $2.4 billion, surpassing the consensus mark by 0.9% [1][8] - The strong performance was driven by growth in Merchant Solutions and Issuer Solutions, alongside a reduction in operating expenses [1][8] GPN's Operating Performance - Adjusted operating income for the quarter was $1.1 billion, reflecting a 5.5% year-over-year increase [2] - Adjusted operating margin expanded by 110 basis points to 45% [2] - Total operating expenses decreased by 20.9% year over year to $1.2 billion, primarily due to lower selling, general, and administrative expenses [2] Q3 Segmental Performances of Global Payments - **Merchant Solutions**: Adjusted revenues reached $1.9 billion, a 2.2% year-over-year increase, exceeding the Zacks Consensus Estimate by 0.7% [3] - Adjusted operating income for this segment increased by 4.4% year over year to $962.3 million, also beating the consensus estimate [3] - **Issuer Solutions**: Adjusted revenues were $561.8 million, growing 6.2% year over year and surpassing the Zacks Consensus Estimate by 1.8% [4] - Adjusted operating income improved by 9.6% year over year to $263.5 million, exceeding the consensus estimate [4] GPN's Financial Position (As of Sept. 30, 2025) - Cash and cash equivalents increased to $2.6 billion from $2.4 billion at the end of 2024 [5] - Total assets rose to $48 billion from $46.9 billion at the end of 2024 [5] - Long-term debt decreased to $13.3 billion from $15.1 billion at the end of 2024 [5] - Total equity increased to $23.3 billion from $22.9 billion at the end of 2024 [5] Capital Deployment Update - GPN repurchased shares worth $1.2 billion in the first nine months of 2025 [7] - A quarterly dividend of 25 cents per share was declared, payable on December 26, 2025 [7] GPN's 2025 Outlook Reaffirmed - Adjusted net revenue growth on a constant currency basis is expected to be between 5% and 6% in 2025 [9] - Adjusted EPS growth is anticipated to be between 10% and 11% in 2025 [9] - The company expects to convert nearly 90% of adjusted net income into adjusted free cash flow [9] - The annual adjusted operating margin is projected to increase by more than 50 basis points in 2025 [9]

Core Insights - Visa Inc. reported fourth-quarter fiscal 2025 earnings per share (EPS) of $2.98, exceeding the Zacks Consensus Estimate of $2.97, with a year-over-year increase of 10% [1][9] - Net revenues reached $10.7 billion, reflecting a 12% year-over-year growth and surpassing the consensus mark by 1% [1][9] Financial Performance - The strong quarterly results were driven by higher processed transactions, payment, and cross-border volumes, although increased operating expenses partially offset the gains [2] - Processed transactions grew 10% year over year to 67.7 billion, beating the estimate of 67.4 billion [3] - Cross-border volume rose 12% year over year on a constant-dollar basis, with a notable 11% increase excluding transactions within Europe [4] Revenue Breakdown - Service revenues increased 10% year over year to $4.6 billion, attributed to expanding payment volumes, beating estimates by 0.3% [5] - Data processing revenues grew 17% year over year to $5.4 billion, exceeding the Zacks Consensus Estimate of $5.2 billion [5] - International transaction revenues rose 10% year over year to $3.8 billion, driven by higher cross-border volumes, surpassing estimates by 1.1% [6] - Other revenues climbed 21% year over year to $1.2 billion, exceeding estimates by 1.4% [6] Operating Expenses - Adjusted operating expenses increased 13% year over year to $3.6 billion, primarily due to higher personnel costs, general and administrative expenses, and professional fees, which was above the estimate of $3.5 billion [7] - Interest expenses rose 19.3% year over year to $210 million [7] Balance Sheet Highlights - As of September 30, 2025, Visa had cash and cash equivalents of $17.2 billion, up from $12 billion at the end of fiscal 2024 [8] - Total assets increased to $99.6 billion from $94.5 billion at the end of fiscal 2024 [8] - Long-term debt decreased to $19.6 billion from $20.8 billion as of September 30, 2024 [8] - Total equity declined 3.1% year over year to $37.9 billion [8] Cash Flow and Capital Deployment - Visa generated net cash from operations of $6.2 billion in the fiscal fourth quarter, a decline of 6.4% year over year [10] - Free cash flows were recorded at $5.8 billion, down 8% year over year [10] - The company returned $6.1 billion to shareholders through share buybacks and dividends, with $24.9 billion remaining under its repurchase program as of September 30, 2025 [11] Fiscal Year 2025 Overview - For fiscal 2025, Visa achieved net revenues of $40 billion, marking an 11% year-over-year increase, with adjusted EPS rising 14% to $11.47 [12] - Payments volume increased 8% year over year on a constant-dollar basis, with processed transactions totaling 257.5 billion, a 10% year-over-year increase [12] Outlook for Fiscal Year 2026 - For fiscal 2026, management anticipates low double-digit growth in net revenues and operating expenses on an adjusted nominal-dollar basis, with EPS expected to grow in the low double-digits [14]

Core Insights - StoneCo Ltd. is increasingly reliant on Brazil's micro, small, and medium-sized businesses (MSMBs), achieving strong profit and return on equity (ROE) growth despite economic challenges [1][5] - The divestiture of software operations has streamlined StoneCo's business model, enhancing capital efficiency and focusing on MSMB banking, credit, and payments [1][9] Payments Segment - Transaction volume (TPV) in the MSMB segment increased by 12% year over year, reaching R$122 billion in the June quarter, driven by a 59% rise in PIX QR code payments and a 6.4% increase in card transactions [2] - The active MSMB client base grew by 17% to 4.5 million, with nearly 40% of merchants utilizing multiple services from StoneCo [3] Banking and Credit Growth - Active banking users rose by 23% year over year to 3.3 million, with deposits increasing by 36%, and time deposits now constitute 83% of the total deposit mix [4] - The credit portfolio expanded by 25% sequentially to R$1.8 billion, with MSMB working capital disbursements up by 41% [4] Competitive Landscape - PagSeguro Digital Ltd. reported a 2.1% year-over-year increase in MSMB TPV, while MercadoLibre, Inc. saw a significant 39% rise in TPV [6][7] Stock Performance and Valuation - StoneCo's shares have surged by 48.6% over the past three months, outperforming the broader industry and the S&P 500 [8] - The current forward 12-month P/E ratio for StoneCo is 10.06X, significantly below the industry average of 38.98X and its three-year median of 10.98X [10] Earnings Estimates - The Zacks Consensus Estimate for StoneCo's earnings per share has been revised upward for both 2025 and 2026 [11]