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Why Qiwi Stock Popped 21% Today

By Rich Smith – Updated Aug 19, 2019 at 5:37PM

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Profits come in a juicy 43% ahead of expectations.

What happened

Shares of Cypriot-registered (but really Russian) Qiwi (QIWI 9.88%) exploded higher in Monday trading, closing the day up 20.9% after beating expectations for fiscal Q2 earnings this morning.  

Analysts had hoped Qiwi, a specialist in online and mobile electronic payments, would earn $0.30 per diluted share on sales of $74.2 million for the quarter. Instead, it reported a monster $0.43 per share profit -- nearly half-again as much as analysts had predicted -- on adjusted net revenue of $88.2 million.  

One and a half kiwis

Image source: Getty Images.

So what

That revenue increased 23% year over year, led by 35% growth in payment services, which include such things as digital wallets and bill payment from self-serve kiosks.

Earnings per share increased 77% in ruble terms, and the company said its self-calculated "adjusted net profit" more than doubled -- up 125%.

Now what

Qiwi also updated full-year guidance, predicting that adjusted net revenue will grow 11% to 16% this year in comparison with 2018, while payment services growth decelerates to a range of 23% to 27%. Adjusted net profit is predicted to grow even faster -- 40% to 50%. At the midpoint, that is even somewhat ahead of the 43% profit growth that Wall Street is looking for.

In other words, after beating expectations in Q2, Qiwi looks set to go on beating them all year long.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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