Shift4 reports Q3 profit beat but lowers full-year guidance
On November 5, Shift4 Payments reported Q3 adjusted EPS of $1.49, GAAP EPS of 37 cents per share and gross revenue of $1.32B. Gross revenue less network fees grew 10% year over year, or 9% on an organic constant-currency basis, while adjusted free cash flow reached $200 million. Management lowered full-year adjusted profit guidance to $5.10, and the shares sold off after the revenue miss and weaker outlook.
Why it matters
The lower $5.10 full-year guidance reduces Shift4's stated earnings outlook despite the quarterly adjusted EPS beat. The reported $200 million of Q3 adjusted free cash flow provides a counterpoint, but investors must weigh it against softer revenue trends and travel-related pressure.
Key facts
- 1Q3 net income was $38M, or 37 cents per share, and adjusted EPS was $1.49. finance.yahoo.com
- 2Q3 gross revenue reached $1.32B and increased 12.1% year over year. finance.yahoo.com
- 3Adjusted revenue was $648M, below the $650.3M estimate reported by Zacks. finance.yahoo.com
- 4Management lowered full-year adjusted profit guidance to $5.10. fool.com
- 5Gross revenue less network fees increased 10% year over year, or 9% on an organic constant-currency basis. finance.yahoo.com
- 6Q3 adjusted free cash flow was a record $200 million. finance.yahoo.com
Open questions
- Q3 net income is reported as $38M in material 1 and $40M in material 5.
- The adjusted revenue estimate is reported as $650.3M in material 1 and $653M in material 3.
Summary written by AlphAI AI Desk from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.