Wrapping up Q1 earnings, we look at the numbers and key takeaways for the diversified financial services stocks, including Berkshire Hathaway (NYSE: BRK.A) and its peers.
Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.
The 12 diversified financial services stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 5% on average since the latest earnings results.
Berkshire Hathaway (NYSE: BRK.A)
Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.
Berkshire Hathaway reported revenues of $83.29 billion, down 9.2% year on year. This print fell short of analysts’ expectations by 9.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
Berkshire Hathaway delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 1.9% since reporting and currently trades at $755,280.
Is now the time to buy Berkshire Hathaway? Access our full analysis of the earnings results here, it’s free.
Best Q1: Paymentus (NYSE: PAY)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Paymentus reported revenues of $280.1 million, up 41.9% year on year, outperforming analysts’ expectations by 8.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and .
Paymentus scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 33% since reporting. It currently trades at $38.93.
Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: NerdWallet (NASDAQ: NRDS)
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ: NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
NerdWallet reported revenues of $186.9 million, up 24.1% year on year, falling short of analysts’ expectations by 4.4%. It was a disappointing quarter as it posted and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 5.3% since the results and currently trades at $10.50.
Read our full analysis of NerdWallet’s results here.
Corpay (NYSE: CPAY)
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
Corpay reported revenues of $1.10 billion, up 12.9% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also logged but .
The stock is up 3.6% since reporting and currently trades at $325.67.
Read our full, actionable report on Corpay here, it’s free.
Western Union (NYSE: WU)
With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.
Western Union reported revenues of $1.03 billion, down 3.8% year on year. This number lagged analysts' expectations by 1.3%. It was a slower quarter as it also recorded and .
The stock is up 3.2% since reporting and currently trades at $8.71.
Read our full, actionable report on Western Union here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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