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As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the diversified financial services industry, 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 11 diversified financial services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.8% 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 $98.88 billion, down 15.9% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Berkshire Hathaway delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 8.1% since reporting and currently trades at $767,866.

Is now the time to buy Berkshire Hathaway? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: Paymentus

Founded in 2004 to simplify the complex world of bill payments, Paymentus provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $310.7 million, up 34.2% year on year, outperforming analysts’ expectations by 10.7%. The business had a stunning quarter with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Paymentus delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.5% since reporting. It currently trades at $34.20.

Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: NCR Atleos

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

NCR Atleos reported revenues of $1.12 billion, up 4.5% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 2.4% since the results and currently trades at $36.92.

Read our full analysis of NCR Atleos’s results here.

Corpay

Formerly known as FLEETCOR until its 2024 rebrand, Corpay 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 $1.17 billion, up 13.9% year on year. This result topped analysts’ expectations by 0.6%. Taking a step back, it was a satisfactory quarter as it also logged full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EBITDA estimates.

The stock is up 12.1% since reporting and currently trades at $293.34.

Read our full, actionable report on Corpay here, it’s free for active Edge members.

NerdWallet

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet 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 $215.1 million, up 12.4% year on year. This print surpassed analysts’ expectations by 11.3%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

NerdWallet scored the biggest analyst estimates beat among its peers. The stock is up 25.4% since reporting and currently trades at $15.02.

Read our full, actionable report on NerdWallet here, it’s free for active Edge members.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how diversified financial services stocks fared in Q3, starting with NCR Atleos .

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 10 diversified financial services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.

Weakest Q3: NCR Atleos

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

NCR Atleos reported revenues of $1.12 billion, up 4.5% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS estimates.

Unsurprisingly, the stock is down 2.5% since reporting and currently trades at $36.89.

Is now the time to buy NCR Atleos? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Paymentus

Founded in 2004 to simplify the complex world of bill payments, Paymentus provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $310.7 million, up 34.2% year on year, outperforming analysts’ expectations by 10.7%. The business had a stunning quarter with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

Paymentus achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $34.27.

Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Euronet Worldwide

Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.

Euronet Worldwide reported revenues of $1.15 billion, up 4.2% year on year, falling short of analysts’ expectations by 4.5%. It was a softer quarter as it posted a significant miss of analysts’ EFT Processing segment estimates and a significant miss of analysts’ Money Transfer segment estimates.

Euronet Worldwide delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 17.8% since the results and currently trades at $72.84.

Read our full analysis of Euronet Worldwide’s results here.

Payoneer

Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.

Payoneer reported revenues of $270.9 million, up 9.1% year on year. This number beat analysts’ expectations by 2.9%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ yield estimates but EPS in line with analysts’ estimates.

The stock is down 2% since reporting and currently trades at $5.68.

Read our full, actionable report on Payoneer here, it’s free for active Edge members.

NerdWallet

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet 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 $215.1 million, up 12.4% year on year. This print surpassed analysts’ expectations by 11.3%. It was an exceptional quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

NerdWallet achieved the biggest analyst estimates beat among its peers. The stock is up 23% since reporting and currently trades at $14.74.

Read our full, actionable report on NerdWallet here, it’s free for active Edge members.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the diversified financial services stocks, including WEX 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 10 diversified financial services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.

WEX

Originally founded in 1983 as Wright Express to serve the fleet card market, WEX provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors.

WEX reported revenues of $691.8 million, up 4% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ Account Servicing segment estimates but a slight miss of analysts’ Payment Processing segment estimates.

“Our strategy to return to revenue growth was demonstrated in the third quarter with both revenue and earnings exceeding the high end of our guidance ranges,” said Melissa Smith, WEX’s Chair, Chief Executive Officer, and President.

Unsurprisingly, the stock is down 2.9% since reporting and currently trades at $149.61.

Is now the time to buy WEX? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Paymentus

Founded in 2004 to simplify the complex world of bill payments, Paymentus provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $310.7 million, up 34.2% year on year, outperforming analysts’ expectations by 10.7%. The business had a stunning quarter with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

Paymentus pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $34.27.

Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: NCR Atleos

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

NCR Atleos reported revenues of $1.12 billion, up 4.5% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 2.5% since the results and currently trades at $36.89.

Read our full analysis of NCR Atleos’s results here.

Western Union

With a history dating back to 1851 when it began as a telegraph company, Western Union 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, flat year on year. This number topped analysts’ expectations by 1%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

Western Union achieved the highest full-year guidance raise among its peers. The stock is up 5.8% since reporting and currently trades at $8.61.

Read our full, actionable report on Western Union here, it’s free for active Edge members.

Payoneer

Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.

Payoneer reported revenues of $270.9 million, up 9.1% year on year. This result beat analysts’ expectations by 2.9%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ yield estimates but EPS in line with analysts’ estimates.

The stock is down 2% since reporting and currently trades at $5.68.

Read our full, actionable report on Payoneer here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Custody Bank company T. Rowe Price jumped 3.2%. Is now the time to buy T. Rowe Price? Access our full analysis report here, it’s free for active Edge members.
• Diversified Financial Services company NCR Atleos jumped 3.1%. Is now the time to buy NCR Atleos? Access our full analysis report here, it’s free for active Edge members.
• Credit Card company American Express jumped 3.1%. Is now the time to buy American Express? Access our full analysis report here, it’s free for active Edge members.
• Asset Management company Blackstone jumped 3.1%. Is now the time to buy Blackstone? Access our full analysis report here, it’s free for active Edge members.

Zooming In On T. Rowe Price (TROW)

T. Rowe Price’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 5.6% on the news that the company announced a strategic collaboration with Goldman Sachs that includes a planned investment of up to $1 billion from the financial giant. As part of the agreement, Goldman Sachs intends to purchase T. Rowe Price's common stock through open-market transactions, aiming to acquire a stake of up to 3.5%. The partnership is designed to leverage the strengths of both firms to create a range of diversified investment solutions for retirement and wealth management clients. The collaboration will focus on developing products that combine public and private market offerings. The companies also plan to launch co-branded target-date investment strategies in mid-2026 that will incorporate private market assets.

T. Rowe Price is down 11.6% since the beginning of the year, and at $100.27 per share, it is trading 19.6% below its 52-week high of $124.69 from December 2024. Investors who bought $1,000 worth of T. Rowe Price’s shares 5 years ago would now be looking at an investment worth $719.42.