Payment processor Adyen sees 36% share price increase after upbeat quarterly update

Payment processor Adyen saw its share value increase by about 36 percent on the Amsterdam stock exchange after a delayed opening on Thursday morning. The rise was due to a well-received quarterly update, correcting some of the losses suffered over the summer after disappointing results from the first half of the year. The company promised to provide shareholders with more information in an attempt to regain confidence.

The Amsterdam company handles payment transactions for companies such as McDonald’s and Hennes & Mauritz (H&M). The fintech firm held an investor day in San Francisco on Wednesday, and also provided a quarterly update.

Its latest figures showed that the company saw turnover increase by 22 percent in the third quarter to over 413 million euros. The company expects annual turnover growth from 20 to 30 percent for the next three years. Fifteen minutes after the opening gong sounded in Amsterdam, Adyen shares were trading about a third higher at 926 euros.

Before the dramatic fall in prices in August that followed its disappointing half-year figures, one share of stock still cost around 1,500 euros. As a result, Adyen lost almost 19 billion euros in market value in one day. Normally, Adyen publishes its results every six months.

Adyen also remains confident in the near future, and the company also wants to push profit margins over the 50-percent mark by 2026. This concerns the adjusted profit before deducting taxes and interest. Adyen has also created 175 full-time jobs in recent months.

Analysts from Belgian bank KBC called it a “solid update” during the investor day, with Adyen again offering some “reassurance” about its activities. Analysts at American bank Wells Fargo were even more optimistic, and returned Adyen to its “buy” list. Wells Fargo previously recommended selling off shares. Analysts from investment bank Bryan Garnier also removed Adyen from its “sell” list. Pundits at JPMorgan and Jefferies welcomed the company’s “more realistic” goals.