Earnings to watch: Paymentus (PAY) reports Q3 results tomorrow

What happened

Paymentus, a digital payment platform, will report its third-quarter earnings on Monday after the market closes. Last quarter it reported revenue of $360.7 million, up 28.8% from a year earlier, beating analysts' revenue expectations.

Confirmed

Global impact / market context

The upcoming report will show whether Paymentus can keep growing quickly. Its last quarter beat revenue, earnings-per-share and EBITDA estimates, which means profit before certain costs. Slower expected growth of 15.5% this quarter would test whether the stock can justify its past performance.

Analyst inference

Peer companies in diversified financial services have already reported third-quarter results. Donnelley Financial Solutions grew revenue 5.5% and beat expectations by 2.8%, while WEX grew 12.8% and topped estimates by 3.2%. Their results offer a comparison for Paymentus's expected growth.

Analyst inference

What to watch

1. Watch whether Paymentus reports revenue growth near the 15.5% year-on-year figure the market expects this quarter, which would be slower than the 34.2% growth in the same quarter last year. Confirmed
2. Watch whether Paymentus again exceeds Wall Street expectations, since it has a history of doing so, which would support the view that analysts' recent reconfirmed estimates are too cautious. Analyst inference
3. Watch whether Paymentus's results resemble peer beats, such as WEX's 12.8% revenue growth and 3.2% beat, which would suggest steady demand across diversified financial services. Analyst inference

Evidence

• stockstory.org