On August 7, Sezzle Inc declined 27.3% overnight, trading at $128.5/share, with turnover of $75,900.
On the news front, the company reported Q2 results that beat analyst estimates on both top and bottom lines, yet suffered heavy selling as profitability declined sharply on a sequential basis. Q2 adjusted EPS came in at $1.17, beating the consensus estimate of $1.03 by approximately 14%, while revenue of $149.7 million surpassed the $135.1 million estimate, representing a 52% year-over-year increase. However, Q2 adjusted EPS fell more than 20% from Q1's $1.47, signaling a meaningful sequential contraction in earnings power.
The company also raised its full-year adjusted EPS guidance to $5.25 from $5.10 previously, above the analyst consensus of $5.12. Despite the upward revision, investor focus centered on the deceleration in profitability momentum. Following Q1 results in May, the stock had surged roughly 20%, elevating expectations substantially. The combination of elevated positioning and slowing sequential growth triggered significant profit-taking pressure.
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