Latest news with #PagSeguroDigital
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
12-05-2025
- Business
- Yahoo
PagSeguro Digital (NYSE:PAGS) investors are sitting on a loss of 64% if they invested five years ago
While not a mind-blowing move, it is good to see that the PagSeguro Digital Ltd. (NYSE:PAGS) share price has gained 28% in the last three months. But don't envy holders -- looking back over 5 years the returns have been really bad. The share price has failed to impress anyone , down a sizable 64% during that time. So we're not so sure if the recent bounce should be celebrated. Of course, this could be the start of a turnaround. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. Our free stock report includes 1 warning sign investors should be aware of before investing in PagSeguro Digital. Read for free now. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the unfortunate half decade during which the share price slipped, PagSeguro Digital actually saw its earnings per share (EPS) improve by 11% per year. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past. Due to the lack of correlation between the EPS growth and the falling share price, it's worth taking a look at other metrics to try to understand the share price movement. In contrast to the share price, revenue has actually increased by 24% a year in the five year period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). PagSeguro Digital is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling PagSeguro Digital stock, you should check out this free report showing analyst consensus estimates for future profits. Investors in PagSeguro Digital had a tough year, with a total loss of 22%, against a market gain of about 9.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand PagSeguro Digital better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with PagSeguro Digital , and understanding them should be part of your investment process. Of course PagSeguro Digital may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
