PagSeguro Digital shares fall as Q2 earnings miss estimates

SAO PAULO - PagSeguro Digital Ltd. (NYSE:PAGS) reported second quarter earnings that fell short of analyst expectations, sending shares down 3.9% in after-hours trading on Monday.

The Brazilian fintech company posted adjusted earnings per share of 1.56 reais, missing the consensus estimate of 1.60 reais. Revenue came in at 4.56 billion reais, beating expectations of 4.35 billion reais.

Total payment volume surged 34.2% YoY to 124.4 billion reais, driven by growth across all merchant segments. The company's total client base expanded 7.4% YoY to 31.6 million.

"We delivered all-time high TPV and revenues driven by all clients' segments, with healthy gross profit margins in Payments and Banking, leading to the all-time high Net Income / EPS, both on a GAAP and non-GAAP basis," said Ricardo Dutra, CEO of PagSeguro Digital.

Gross profit rose 21.7% YoY to 1.82 billion reais, with gross margin expanding to 39.9% from 39.1% a year ago.

The company's total deposits jumped 87.2% YoY to 34.2 billion reais, reflecting strong growth in banking issuances.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com