South Africa's Lesaka Technologies Q1 net revenue rises on consumer and enterprise growth
Overview
South Africa fintech firm's fiscal Q1 revenue rose 8% yr/yr in ZAR terms
Adjusted EPS was positive for the quarter, but fell 26% yr/yr in ZAR terms
Company reaffirmed full-year outlook, citing 17 consecutive quarters meeting profitability guidance
Outlook
Lesaka sees Q2 net revenue between ZAR 1.62 bln and ZAR 1.72 bln
Company expects Q2 group adjusted EBITDA between ZAR 280 mln and ZAR 320 mln
Lesaka reaffirms FY2027 adjusted EPS guidance of ZAR 7.50 to ZAR 8.50
Result Drivers
MERCHANT SEGMENT DECLINE - Merchant revenue fell 13% yr/yr in ZAR terms and segment adjusted EBITDA dropped 51% as the company faced lower transaction volumes
CONSUMER AND ENTERPRISE GROWTH - Consumer revenue rose 24% and enterprise revenue climbed 60% yr/yr in ZAR terms, supporting overall group performance
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Net Revenue | $97.22 mln | ||
Q1 Adjusted EPS | $0.04 | ||
Q1 Net Loss | Miss | $4.18 mln | $2.79 mln (1 Analyst) |
Q1 Adjusted EBITDA | Miss | $13.51 mln | $14.21 mln (1 Analyst) |
Q1 Operating Income | -$1.07 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Lesaka Technologies Inc is $7.56, about 89% above its November 3 closing price of $4.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Nov 3 - Payments platform Block's Q3 profit beats estimates
Nov 3 - Marqeta Q3 revenue slightly beats estimates on volume growth
Nov 3 - Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)