Wise PLC (LSE:WISE) shares dropped nearly 11% on Tuesday after the cross-border payments network operator reported a fourth-quarter volumes miss in a full-year 2023 trading update, according to analysts at Peel Hunt.
The LSE main market-listed firm reported volumes of £26.7bn for its fourth quarter, up 25% year-on-year, but that was 2% below the Peel Hunt estimate and 5% below consensus, driven by an 8% year-on-year/3% quarter-on-quarter fall in personal volumes per customer.
Revenue was £223.5mln, up 45% year-on-year, a small miss versus consensus, with total income of £279.5mln, up 83% year-on-year and 1% ahead of consensus.
In a note to clients, the Peel Hunt analysts said: "The second consecutive quarter of declines in Personal Volumes per Customer is likely to be viewed negatively by the market, and we await incremental colour around the drivers of better-than-expected take rate."
Peel Hunt reiterated a 'hold' rating and 600.0p price target on Wise shares, which in early morning trading in London were down 64.20p at 521.20p.