What happened
Shares of Shift4 Payments (FOUR 1.06%), a payment processor, initially jumped by as much 11.4% before falling later in the trading day after the company reported mixed third-quarter results.
Shift4 beat analysts' consensus bottom-line estimate for the quarter, but its revenue missed expectations.
The fintech stock was down by 6.6% as of 12:58 p.m. ET.
So what
Shift4 reported non-GAAP (adjusted) earnings per share of $0.44 in the third quarter, which was up from $0.26 in the year-ago quarter and slightly ahead of Wall Street's consensus estimate of $0.43 per share.
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But the company's total revenue of $547.3 million -- up 45% from the year-ago quarter -- missed analysts' average estimate of $550.4 million.
Shift4 CEO Jared Isaacman said in a press release that the company had a "reasonably strong quarter" and highlighted the fact that the company set several new quarterly records, including reporting $46.4 million in net income, up from a loss of $13.8 million in the year-ago quarter.
Now what
Shift4's management said that fiscal 2022 revenue will be in the range of $1.95 billion to $2 billion, which is below analysts' consensus estimate of $2.01 billion.
With Shift4 reporting better-than-expected earnings but missing top-line estimates -- as well as issuing revenue guidance slightly below expectations -- investors tried to gauge the company's latest results and ultimately were disappointed with what they saw.
