Shift4 Discloses Preliminary Q2 Results; Expects Sales to Double

Shift4 Payments (FOUR) has revealed preliminary Q2 results for the three months ended June 30, 2021. The company provides secure payment processing solutions, powering the top point-of-sale and software providers across numerous verticals.

For the second quarter 2021, Shift4 Payment expects to report end-to-end payment volume in the range of $11,780 million to $11,820 million. Also, gross revenues are anticipated to be between $345 million and $350 million, which compares favorably with $141.8 million reported in the same period last year.

Further, gross revenue minus network fees is expected to be around $132 million to $136 million. Shift4 expects to report net income of nearly $3.5 million to $4.5 million for the quarter. In the year-ago quarter, the company had reported a net loss of $75 million. (See Shift4 stock chart on TipRanks)

Following the release of preliminary results, Raymond James analyst John Davis reiterated a Hold rating on the stock.

Davis said, “While execution has no doubt been impressive, we remain on the sidelines for now but could become more positive on the stock on either a pullback (currently trading at 28x our 2023E adj EBITDA) or potential transformational M&A.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus based on 3 Buys and 2 Holds. The average Shift4 price target of $103.25 implies 12.9% upside potential from current levels.