By Senad Karaahmetovic
Shares of Payoneer Global (NASDAQ:PAYO) shares are trading over 20% higher in premarket trading on Friday after the fintech company delivered strong Q2 results and upgraded its full-year guidance.
Payoneer reported an EPS of $0.01 on revenue of $148.2 million, much better than the analyst consensus of a loss per share of $0.05 to revenue of $131.6 million.
On a full-year basis, the company now sees an adjusted EBITDA between $30 million and $35 million, a big upgrade compared to the prior forecast that was calling for a loss of $10 million to $20 million. Analysts were expecting a loss of $12.2 million.
Payoneer also expects to see revenues between $580 million and $590 million, up from the prior $550 million to $560 million and higher than the consensus of $563.3 million.
“We are growing the number of customers using our services, benefitting from our strategic expansion into higher value services, as well as seeing better-than-expected results from Ukraine and rising interest rate tailwinds,” the company said.
A Goldman Sachs analyst said PAYO delivered a “beat and raise with considerable top and bottom line momentum into 2H22.”
The analyst hiked the price target to $8.50 from $6.50 and reiterated a Buy rating as “we factor in greater conviction around the interest income benefits and a stronger profitability profile vs our prior estimates.”
“We expect shares to perform strongly post PAYO’s 2Q results, in which PAYO put up a strong beat and raise and also guided to consistent profitability on a go forward basis. In addition, while the company will likely see more of a benefit in the back half of the year, we think the incremental disclosures around $20mn in runrate interest income is a helpful sign of things to come (and conservative in our view),” Nance added.
A Citi analyst raised the price target to $9 from $7.50 to reflect “handily” beats and raises.
“Payoneer reported a solid quarter benefiting from the continued growth of its customer base and new geographies, higher rates and greater use of non-volume based services. We believe the higher take rates should be sustainable on a full-year basis... Payoneer is building a good track record of performance of controllable factors vs. expectations,” the analyst added in a note.