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Zip Co (ASX:ZIP) is sizzling through Wednesday trade, with the buy now, pay later player jumping more than 15% after a strong bump to its full-year earnings guidance.
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The much-watched Australian financial company hiked its FY25 revenue guidance by $20 million following a strong May performance, mainly spurred on by 40% year-on-year growth across its in-focus U.S. transaction markets.
This “reflects a continued strong performance,” Zip Group CEO Cynthia Scott said.
Zip is taking it to mean it’s on the money with its U.S moves. “This momentum… reflects the resilience of our model and execution of our strategy,” Scott declared.
Traders seem to have read something similar in the short June 11 release – ZIP shares have popped by as much as 15% in value through Wednesday, and are now selling at $2.68 each after the 35c hike. That adds to a heady +37% gain this week.
One excited HotCopper user even declared the upgrade meant “we have ignition” as forum commenters agreed the results seemed to be a step in the right direction.
How true that rings over the coming weeks and months is to be seen – and it’s worth remembering Zip was once a lofty $14.53 in 2021 before falling back to earth over the next 24 months – but it’s nothing to sniff at either.
Even just taking a look at the YTD charts tells a happier story for Zip holders: The buy now, pay later player has cracked +108% from June last year to today.
Zooming in on the chart, the BNPL player has added +127% value since early April.
That momentum may be helped by the fact the Oz finance company has seen no material changes to its credit loss performance in the U.S. and at home.
So too Zip’s on-market share buyback scheme, which has already seen the BNPL player re-buy a little over 12 million shares worth as much as $22.6 million.
That plan has an authorised $50 million cap before it officially wraps up.
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Back in October 2024, this HotCopper writer reported that Zip was looking to “fulfil a refreshed purpose that aligns on our refreshed mission ‘to bring exceptional experiences, innovation and partnership to every financial journey’.”
At the same time, the company pledged to “focus on delivering growth and engagement, product innovation, and operational excellence” in FY25.
So far, Zip Co and its leadership seem to be on the right track in that regard.
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