Zip's Domestic Operations Drive Earnings Miss -- Market Talk

Dow Jones
2025/01/30

2306 GMT - Zip's Australia and New Zealand operations appear to be behind the buy-now-pay-later provider's weaker-than-expected December-quarter earnings, Citi analyst Siraj Ahmed says. Zip's U.S. revenue margin fell seasonally to 6.9%, in-line with Ahmed's expectations, but group revenue still slipped from the prior three months by more than he had anticipated. This resulted in cash earnings of A$35 million, well short of Ahmed's A$44 million forecast. Strong U.S. growth is already expected by investors, so the market may be disappointed that Zip has not maintained its recent track record of beating forecasts. Citi has a neutral rating and A$3.30 target price on the stock, which is at A$3.27 ahead of the open. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

January 29, 2025 18:07 ET (23:07 GMT)

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