miniseries
PagSeguro Digital (NYSE:PAGS) stock slid 14% in Friday afternoon trading after the Brazilian payment and digital banking company’s Q1 top line trailed Wall Street estimates.
Q1 total revenue and income of R$3.75B (US$750M), falling short of the US$768M consensus estimate, slipped 5% Q/Q and rose 9% Y/Y.
Q1 GAAP EPS of R$1.13 (US$0.23), matching the average analyst estimate, fell from R$1.24 in the prior quarter and increased from R$1.05 in the year-ago period.
The company said it changed its key performance indicators to align with its marketing strategy “to converge our brands into one: from now on, we are PagBank.”
Q1 adjusted EBITDA of R$787M was flat vs. Q4 2022 and rose 18% Y/Y. Payments adjusted EBITDA of R$718M fell 7% Q/Q and 3% Y/Y. Financial Services adjusted EBITDA improved to R$69M from R$12M in Q4 and from -R$76M in Q1 2022.
Total finance volume of R$204B slipped from R$209B in the previous quarter and jumped from R$152B in the year-ago period. Meanwhile, total payment volume of R$88.1B dipped from R$94.3B in Q4 2022 and rose from R$80.1B in Q1 2022. Total banking volume was R$116B edged up from R$115B in Q4 and jumped from R$72.1B in the year-ago quarter.
Before the Q1 earnings were released, SA analyst Cameron Fen called PagSeguro a deep value stock with a fast-growing, highly profitable business.
Image and article originally from seekingalpha.com. Read the original article here.