Payment Methods

Earnings Giveth and Taketh Away for Payments Stocks

Wall Street

In the week that just ended, with a bang and not a whimper on strong jobs numbers, the Payments Stock Index gave a decidedly mixed performance. The earnings numbers continue to dominate headlines and also the stock swings that were in evidence over the past several days.

On the positive side of performance, the payments processing marquee name Square had dominated the earnings headlines, with a double-digit percentage gain that helped push the stock up a net 7 percent to end the week. Investors were heartened by a better than expected loss on the bottom line, with selling volumes on the rise and better traction at the larger sellers signing on to use the platform. The Street had expected a loss of 20 cents a share, while the actual number was 11 cents. The revenues of more than $400 million topped the Street nicely, which had been at $390 million. The key metric of course was transaction volume, which gained 42 percent year over year to $12.5 billion. The largest sellers, with transaction volume north of $125,000 annually, saw activity spike 62 percent year over year.

FleetCor jumped a bit on the news that the fuel card provider had acquired Travelcard Nederland, expanding its reach into Europe. No financial terms were disclosed.

On the negative side of the performance ledger, Planet Payment lost a staggering 20 percent on the week in the wake of results that missed the Street by a penny, with net income of 2 cents per share versus the Street at 3 cents per share. Though the company guidance was roughly in line with expectations, investors were clearly not impressed.


Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. The July 2019 Pay Advances: The Gig Economy’s New Normal, a PYMNTS and Mastercard collaboration, examines pay advances – full or partial payments received before an ad hoc job is completed – including how gig workers currently use them and their potential for future adoption.

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