Canadian fintech company Nuvei (TSX:NVEI) has revised its annual financial targets upward following a significant 72% surge in transaction value under merchant contracts in Q3. The firm now anticipates a total volume of $198-$200 billion, marking an increase from the earlier estimate of $193-$197 billion.
This development comes in light of the robust Q3 performance, which has also shaped Nuvei's final quarter projection. The company now expects to achieve a total volume of $57-$59 billion in the last quarter.
Alongside the revised volume forecast, Nuvei has also adjusted its yearly revenue target. The new forecast is set at $1.163-$1.182 billion, showing a slight increase from the previous range of $1.157-$1.182 billion.
In addition to volume and revenue, the company has increased its EBITDA target to $427-435 million. This represents a considerable earnings adjustment from the previous target of $417-$432 million.
These updates were reported by Robb M. Stewart and indicate that Nuvei's business performance in Q3 has had a positive impact on its financial outlook for the remainder of the fiscal year.
InvestingPro Insights
As we delve deeper into the financial health of Nuvei, InvestingPro data reveals key insights. With a market capitalization of $2190M, Nuvei trades at a high earnings multiple of 111.78. The company's revenue for the last twelve months as of Q2 2023 stands at an impressive $981.01M, showing a growth of 19.4%. The company's gross profit margin is equally noteworthy at 79.91%.
InvestingPro Tips indicate that Nuvei has high earnings quality, with free cash flow exceeding net income. It's expected that the net income will grow this year, a promising sign. However, it's worth noting that the stock price has been quite volatile, having fallen significantly over the last three months.
For those interested in a more comprehensive analysis, InvestingPro offers a total of 9 additional tips and a wealth of real-time data metrics. These insights could provide a more holistic understanding of Nuvei's financial performance and future prospects.
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