How will FOUR address its earnings volatility?

**Shift4 Payments (FOUR) is likely to address its earnings volatility through a combination of strategic acquisitions and financial adjustments.** Here's how: 1. **Strategic Acquisitions**: FOUR's recent acquisition of Global Blue Group is a significant move to enhance its market position and revenue streams. This strategic expansion could help diversify its earnings and reduce volatility by entering new markets and gaining access to new customer bases. 2. **Financial Adjustments**: The company's financial adjustments, such as the issuance of new common stock and the repurchase of common stock, can also influence its earnings volatility. By managing its capital structure, FOUR can potentially stabilize its earnings per share (EPS) and growth rate, as indicated by the estimate EPS and estimate EPS growth rate. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |AVPT|AVPT.O|AvePoint|2024 Q1|80|-0.01|185| |AVPT|AVPT.O|AvePoint|2024 Q2|0|-0.07|185| |AVPT|AVPT.O|AvePoint|2024 Q3|150|0.01|185| |code|Ticker|Name|Date|Repurchase of Common Stock|Dividend Yield (TTM)|market_code| |---|---|---|---|---|---|---| |AVPT|AVPT.O|AvePoint|20240331|-1.3743E7||185| |AVPT|AVPT.O|AvePoint|20240630|-5408000||185| |AVPT|AVPT.O|AvePoint|20240930|-2553000||185| |AVPT|AVPT.O|AvePoint|20241231|-1.1349E7||185| 3. **Implied Volatility Management**: Historically, FOUR's implied volatility has dropped by an average of 27% after earnings. This suggests that the market may have already accounted for some of the volatility in its pricing, which could reduce the actual volatility experienced by investors. 4. **Market Sentiment and Analysts' Views**: Despite the volatility, analysts have raised price targets following the acquisition, indicating an optimistic outlook. This positive sentiment could help stabilize the stock and earnings over time. 5. **Economic Factors**: The company's resilience in a strong economy and its ability to adapt to economic headwinds will also play a crucial role in managing earnings volatility. As long as the underlying economic conditions remain favorable, FOUR's earnings are more likely to stabilize. In conclusion, Shift4 Payments is likely to address its earnings volatility through a mix of strategic growth initiatives, financial management techniques, and favorable economic conditions. These factors combined could help stabilize its earnings and support long-term growth.