Latest news with #PAGS
Yahoo
4 days ago
- Business
- Yahoo
PagSeguro Digital Ltd (PAGS) Q2 2025 Earnings Call Highlights: Navigating Growth Amid Economic ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points PagSeguro Digital Ltd (NYSE:PAGS) reported a 4% year-over-year growth in Total Payment Volume (TPV), reaching 130 billion reais. The company's net revenues increased by 11% year over year, reaching BRL5.1 billion, with an impressive 18% growth when excluding interchange fees. Non-GAAP net income grew by 4% compared to Q2 2024, with a diluted EPS on a GAAP basis increasing by 14% year over year. PagSeguro Digital Ltd (NYSE:PAGS) returned 1.1 billion in excess capital to shareholders year-to-date, including 700 million reais in share repurchases and over 400 million as dividends. The banking segment showed exceptional performance, with gross profit growing 97% year over year, now accounting for over 26% of total gross profit. Negative Points The company faced a challenging macroeconomic environment with signs of broad-based economic cooling in Brazil, affecting consumer confidence and discretionary spending. There was a contraction in credit origination in the market due to increased risk aversion and more selective lending standards. Despite the growth, the TPV was flattish quarter-on-quarter, indicating potential market share losses. The MSMB segment experienced a 2% drop in TPV quarter-on-quarter, attributed to macroeconomic challenges and repricing effects. Financial costs rose by 48% primarily due to higher interest rates, impacting the company's profitability. Q & A Highlights Warning! GuruFocus has detected 4 Warning Signs with PAGS. Q: Can you elaborate on the TPV performance, particularly the drop in MSMB TPV, and what can we expect going forward? A: The TPV was affected by several factors, including a challenging macroeconomic environment and a hard comparison with the previous year. We are focusing on profitability rather than TPV growth. Our strategy includes repricing and focusing on client-oriented approaches. We expect to see improvements as we continue to focus on gross profit and EPS rather than TPV alone. - Unidentified_3 Q: How do you plan to manage capital distribution given the solid capital position? A: We are considering share buybacks and dividends as part of our capital distribution strategy. We have returned BRL1.9 billion to shareholders in the last 12 months and are looking to improve our capital structure. We expect to distribute more capital soon, balancing growth and profitability. - Unidentified_3 Q: Can you provide more details on the growth and strategy of your banking business? A: Our banking business is becoming a significant pillar, contributing 26% of total gross profit. We see opportunities in expanding our credit portfolio, particularly in working capital loans for merchants. The banking segment is expected to continue growing and gaining a larger share of our total revenue and gross profit. - Unidentified_3 Q: How do you view the competitive landscape, and are there any concerns about market share? A: We focus on profitability rather than market share. The competitive landscape is rational, with most players focusing on profitability due to high interest rates. We are not seeing any irrational behavior in the market, and our strategy remains centered on client engagement and profitability. - Unidentified_3 Q: What is your approach to managing funding costs, and how do you see this evolving? A: We are focused on managing our funding costs by diversifying our funding sources and optimizing our funding structure. Our APY has decreased, and we aim to maintain competitive costs across different funding products. We do not anticipate significant changes in our funding strategy that would negatively impact our financials. - Unidentified_5 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
21-07-2025
- Business
- Yahoo
PagSeguro (PAGS) Drops 8.86% as Analysts Expect Q2 Earnings Fall
We recently published PagSeguro Digital Ltd. (NYSE:PAGS) is one of this week's top performers. Shares of PagSeguro Digital declined by 8.86 percent week-on-week to finish at $7.92 last Friday from $8.69 on July 11, as investors unloaded positions ahead of an expected earnings drop in its second quarter report. In a market note earlier last week, Zacks Research said that PagSeguro Digital Ltd. (NYSE:PAGS) is projected to report an EPS of $0.3 or a 6.25 percent decline from the same period last year, but revenues are expected to go higher at $913.21 million or 4.44 percent higher year-on-year. PagSeguro Digital Ltd. (NYSE:PAGS) currently holds a 'hold' rating from Zacks Research. In the context of valuation, the company is currently trading at a Forward P/E ratio of 7.06, well below the industry average Forward P/E of 16.08, which means that the company is trading at a discount to its peers. A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment. Last Wednesday, PagSeguro Digital Ltd. (NYSE:PAGS) also earned a conservative rating from JPMorgan, assigning a 'neutral' stance on the company but with a higher price target of $13. The said figure marks a 49.6 percent upside from its latest closing price. While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
PagSeguro Digital Ltd. (PAGS) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, PagSeguro Digital Ltd. (PAGS) closed at $9.37, marking a -2.8% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%. The stock of company has risen by 11.06% in the past month, leading the Business Services sector's loss of 0.89% and the S&P 500's gain of 5.12%. Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.31, reflecting a 3.13% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $892.72 million, indicating a 2.1% growth compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and a revenue of $3.65 billion, representing changes of +4.13% and +4.63%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, PagSeguro Digital Ltd. boasts a Zacks Rank of #2 (Buy). In terms of valuation, PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 7.65. For comparison, its industry has an average Forward P/E of 16.11, which means PagSeguro Digital Ltd. is trading at a discount to the group. We can also see that PAGS currently has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.28 as trading concluded yesterday. The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 22% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
PagSeguro (PAGS) Jumps 10.18% as Brazil Central Bank Likely to Pause Rate Hikes
We recently published . PagSeguro Digital Ltd. (NYSE:PAGS) is one of the stocks that soared higher on Tuesday. PagSeguro Digital rallied for a second day on Tuesday, adding 10.18 percent to close at $9.96 apiece as investor sentiment was likely buoyed by the Brazil central bank's announcement that it would now pause from interest rate hikes after pulling the trigger for the 7th straight increase last week. Last Wednesday, the central bank raised its benchmark rates by 15 percent or 0.25 basis points in an effort to curb inflation. A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment. The rate, known as the Selic, is one of the highest in the world and is at its highest level since 2006. The announcement to pause hikes next Monetary Board meeting bolstered sentiment for PagSeguro Digital Ltd. (NYSE:PAGS) on optimism that it would further buoy borrowing demand. In recent news, PagSeguro Digital Ltd. (NYSE:PAGS) announced cash dividends worth $0.12 to shareholders as of record date June 16, 2025. The dividends are payable on August 15, 2025. While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
19-06-2025
- Business
- Yahoo
PagSeguro (PAGS) Flies 12.68% Higher on Dividend Declaration
PagSeguro Digital Ltd. (NYSE:PAGS) is one of the . PagSeguro saw its share prices grow by 12.68 percent on Monday to close at $9.42 apiece as investors gobbled up stocks following the declaration of cash dividends. In a regulatory filing, PagSeguro Digital Ltd. (NYSE:PAGS) said its board of directors approved the distribution of cash dividends worth $0.12 to shareholders as of record date June 16, 2025. The dividends are payable on August 15, 2025. PagSeguro Digital Ltd. (NYSE:PAGS) said it expects to make two additional special distribution of cash dividends in the same amount for common shareholders within the next three quarters, subject to certain conditions, including market and company financial conditions. In the first quarter of the year, PagSeguro Digital Ltd. (NYSE:PAGS) said it achieved an 8.9-percent increase in net income at R$525 million from R$482 million in the same period last year. Revenues grew by 12.6 percent to R$4.85 billion from R$4.3 billion year-on-year. A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment. Looking ahead, PagSeguro Digital Ltd. (NYSE:PAGS) said it is confident to deliver and achieve its 2025 guidance, saying that the bank is 'a company recognized for its strong track record in delivering results and balancing growth with profitability despite economic cycles.' While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
