NEW YORK - Shift4 Payments Inc . (NYSE:FOUR) shares plunged 10.9% Tuesday after the payment processing company reported third-quarter earnings and revenue that fell short of analyst expectations.
The Allentown, Pennsylvania-based company posted adjusted earnings per share of $1.04, missing the consensus estimate of $1.06. Revenue for the quarter came in at $365.1 million, below the $370.88 million analysts had projected. Despite the miss, revenue was up 50% YoY.
Shift4 reported end-to-end payment volume of $43.5 billion during the third quarter, representing a 56% increase from the same period last year. Gross profit rose 48% YoY to $253.2 million.
The company tightened its volume range and raised the mid-point of its fourth-quarter guidance for gross revenue less network fees and adjusted EBITDA. Shift4 noted that annualizing the midpoint of its Q4 adjusted EBITDA guidance would already meet the 2025 consensus estimate.
Shift4 highlighted several accomplishments during the quarter, including major hospitality wins and continued growth of its SkyTab point-of-sale system. The company also completed the acquisition of Givex, adding over 130,000 new gift and loyalty customers.
Despite the earnings miss and stock decline, Shift4 remains optimistic about its growth trajectory, stating it is on track to close the year with organic gross revenue less network fees growth exceeding 25%.
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