EML Payments Shares Suffer a Volatile Day of Trade (ASX:EML)

After surging 4.5% at the open of trade this morning, The EML Payments Ltd [ASX:EML] share price is now down 1.08%.

A surprising result for the company as it recaps an incredible performance for FY20. Results that EML is hoping and planning to emulate in FY21.

For whatever reason though, investors are fleeing from the stock. Perhaps looking to take profit while they can — or perhaps uncertain about the company’s future.

Either way, it is just another challenge that the company will need to overcome.

Something that the market will certainly be keeping track of.

Boastful gains

Today EML has been busy preparing its latest results for back-to-back presentations.

The first of which was held today at the Goldman Sachs Annual Virtual Tech Forum. Followed by the Morgan Stanley Virtual Australian Emerging Companies Forum on Monday (26 October).

Two events that EML is no doubt hoping to impress at. Putting forward their case to win over more capital for further growth.

And it is hard to argue against the protentional of this growth.

After all, EML has seen a 54% increase in their Gross Debit Volume (GDV); totalling $13.88 billion. A key metric highlighting just how much money EML is responsible for across their transactions. Volume that also helped see strong growth in revenues (up 25%) and net profit (up 17%).

Plus, with a presence in both the US and the UK, they have the ability to grow significantly abroad. Something that other local fintech companies have done with great success.

Whether or not they will seize this success though, is the ultimate question for investors.

What’s next for the EML share price?

As we’ve seen this week, fintech is still enjoying its time in the limelight. The mammoth partnership between Afterpay and Westpac announced yesterday is a prime example.

For that reason, the industry is pushing many new boundaries. Forcing companies like EML to chase even greater growth ambitions.

In fact, this may be why their shares are currently down for the day.

Because while their growth has been good, it could always be better. At least by 2020 standards for a fintech player…

Needless to say, these may wind up being overly lofty ambitions.

It’s tough to say what is and isn’t to be expected.

Either way, EML shareholders have great expectations and management is gunning for them. Now all they have to do is find a way to deliver on them.

Walking the walk though, may not be quite as easy as talking the talk…

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: Check out our new report on the best fintech stocks you can invest in right now. Including three of our favourite picks that every investor needs to consider! Get your copy of the full report, right here.


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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