Shares of Nuvei Corp. (NVEI) jumped 18% in earlier trading Tuesday after the company reported strong second-quarter results. The global payment technology partner performance was driven by growth in volumes of current customers and acceleration of new customers.
Indeed, total volume increased 146%, from $8.9 billion to $21.9 billion. Ecommerce accounted for approximately 84% of the total volume.
Revenue for Q2 2021 came in at $178.2 million, an increase of 114% from a revenue of $83.3 million reported in Q2 2020. (See Nuvei Corp. stock charts on TipRanks)
Meanwhile, the company reported a profit of $38.9 million ($0.26 per diluted share) in the quarter ended June 30, compared to a profit of $14 million ($0.15 per diluted share) a year ago. Adjusted EBITDA increased 112% from $37.4 million to $79.4 million.
On an adjusted basis, Nuvei earned $0.44 per diluted share for its most recent quarter compared with an adjusted profit of $0.18 per diluted share in the prior-year period.
Nuvei chairman and CEO Philip Fayer said, “Our revenue and Adjusted EBITDA results for the second quarter of 2021 exceeded the financial outlook previously provided, underscoring the strength and momentum in our business.
“Our accelerated investments in product, innovation, distribution and talent are driving performance and laying the foundation for sustainable growth. We are proud of our results and are consequently raising our financial outlook for the full year 2021 and providing medium and long-term growth targets.”
Nuvei completed the previously announced acquisition of Mazooma Technical Services Inc. on August 3, 2021.
Last week, Scotiabank analyst Paul Steep reiterated a Buy rating on NVEI while raising its price target to C$109 (from C$106). This implies 6.4% downside potential.
Overall, NVEI scores a Moderate Buy consensus rating among analysts based on four Buys and two Holds. The average Nuvei price target of C$100.99 implies 13% downside potential to current levels.
Related News:
Lightspeed Revenue Triples in Q1; Shares Pop 7%
Shopify Posts Better-Than-Expected Q2 Results; Shares Dip 3%
Cogeco Communications Reports Higher Revenue and Profit in Q3
