Digital payment platform Paymentus (NYSE: PAY) will be reporting results this Monday after market hours. Here’s what investors should know.
Paymentus beat analysts’ revenue expectations last quarter, reporting revenues of $358.4 million, up 30.2% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA and EPS estimates.
Is Paymentus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Paymentus’s revenue to grow 23.4% year on year, slowing from the 41.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Paymentus has a history of exceeding Wall Street’s expectations.
Looking at Paymentus’s peers in the diversified financial services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PayPal delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 2.5%, and WEX reported revenues up 14.2%, topping estimates by 1.8%. PayPal traded up 4.1% following the results while WEX was also up 10.1%.
Read our full analysis of PayPal’s results here and WEX’s results here.
There has been positive sentiment among investors in the diversified financial services segment, with share prices up 2.4% on average over the last month. Paymentus is up 21.2% during the same time and is heading into earnings with an average analyst price target of $34 (compared to the current share price of $34.09).
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