Why PagSeguro Stock Jumped Today
Shares of Brazilian financial-technology (fintech) company PagSeguro Digital (NYSE: PAGS) jumped on Friday after the company reported financial results for the fourth quarter of 2022. Revenue was up sharply and profits improved, which is why the stock was up 6% as of 3:30 p.m. ET. But it had been up as much as 19% earlier in the day.
For Q4, PagSeguro grew its revenue 22% year over year to about $760 million (the company reports in Brazilian reais). Management celebrated its ongoing growth, pointing out that it now has 28 million clients, up from 26 million in the previous quarter, which it says makes it the second-largest Brazilian digital bank.
Additionally, PagSeguro grew its earnings per share (EPS) by 36% year over year in Q4 -- outpacing revenue growth -- as management works through some operational challenges. Specifically, management slowed down some of its lending to riskier borrowers, which required higher provisions for losses. These loss provisions had impacted profits in recent quarters. But this area showed improvement to end the year.
Source Fool.com
