Stock performance was decidedly down this past week, as earnings continued to factor into investors’ sentiments over the payments space.
The winners included global mobile capture and identity verification technologies provider Mitek Systems Inc., which gained 60 cents on the week and added 5.8 percent. Shares rallied on the heels of earnings, where the firm beat the Street by three pennies, posting adjusted earnings of eight cents per share. The company also said its top line grew by 30 percent from last year's figures, finishing out at $11.8 million.
Mitek management called out recurring revenues via mobile deposit as one contributor to growth. In addition, shares were likely buoyed by Wall Street analysts who raised their targets on the company, including California-based venture capital firm Benchmark Capital, which took its target to $12 from $10.
Declining issues included payment systems company ACI Worldwide, which saw shares slip 5 percent even as the company bested earnings expectations on the top line by $15 million. The net loss of 25 cents per share, worse than expectations, was likely tied to a legal settlement. Total revenues were reported at $241 million, up more than 9 percent year-over-year, and management pointed to strength in new bookings. It is possible, though, that investors were disappointed that ACI Worldwide only kept guidance intact rather than raising it.
Financial services, merchant services and mobile payment company Square, Inc. gave up more than 4 percent on the week, with investors likely fretting about valuation. The concerns came even as the company put up numbers that beat expectations on most metrics. Net loss was a penny better than expected, while revenues stood at $552 million, beating out the projected $536 million. Gross payment volume was up double digit percentages to $16.4 billion, while some estimates had pegged the number at $16 billion.