Nuvei Swings to Profit in Q3, Raises Outlook

Nuvei Corp (NVEI) reported strong third-quarter results. The global payment technology partner also increased guidance for Fiscal Year 2021.

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Indeed, total volume increased 88%, from $11.5 billion to $21.6 billion. E-commerce accounted for 83% of the total volume.

Revenue for Q3 2021 came in at $183.9 million, an increase of 96% from a revenue of $93.8 million reported in Q3 2020. (See Insiders’ Hot Stocks on TipRanks)

The company reported a profit of $28 million ($0.19 per diluted share) in the quarter ended September 30, compared to a loss of $77.9 million ($0.88 per diluted share) a year ago. Adjusted EBITDA increased 97% from $41 million to $80.9 million.

On an adjusted basis, Nuvei earned $0.42 per diluted share for its most recent quarter compared with an adjusted profit of $0.17 per diluted share in the prior-year period.

Raises Outlook for the Full Year

Nuvei chairman and CEO Philip Fayer said, “We achieved a number of significant milestones in the third quarter including financial results that exceeded the outlook previously provided, releasing new innovative product solutions, growing our portfolio of alternative payment methods (“APMs”), announcing several exciting new customer wins, and completing three acquisitions that enhance and expand our addressable market, product capabilities, and geographic footprint.”

Nuvei has raised its financial outlook for full-year 2021 and reiterated its previously announced medium- and long-term growth targets. Revenue is now expected to be in the range of $717 million to $723 million, as compared to $690 million to $705 million previously forecasted.

Wall Street’s Take

On November 4, Bank of America analyst Jason Kupferberg initiated coverage of NVEI with a Buy rating and a price target of $145.00 (C$180.47). This implies 29% upside potential.

Overall, NVEI scores a Strong Buy consensus rating among analysts based on seven Buys and two Holds. The average Nuvei price target of C$157.11 implies 12.3% upside potential to current levels.