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Will New Client Wins Unit Aid Gorilla Technology's Q1 Earnings?

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Gorilla Technology Group Inc. (GRRR - Free Report) is scheduled to release first-quarter 2025 results in the first half of June. The Zacks Consensus Estimate for earnings per share is pegged at 1 cent. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The first-quarter earnings estimate has remained stable over the past 30 days. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $20 million.

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What Our Quantitative Model Unveils for Gorilla Technology

Our proven model does not conclusively predict an earnings beat for Gorilla Technology this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here, as you see below.

Earnings ESP: Gorilla Technology has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: GRRR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape GRRR’s Q1 Results

Gorilla Technology’s revenues are expected to have gained on the back of expanding operations across the USA, MENA, Southeast & East Asia, South America and the UK in the first quarter. 

Strong execution on key contracts, new business growth and high client retention rates are likely to have resulted from sustained demand for GRRR’s AI-driven security and intelligence solutions, which in turn, is likely to have driven its top line. 

In the to-be-reported quarter, the gross margin is expected to have witnessed continued growth, thanks to its prudent cost-cutting initiatives, high-value solutions and long-term scalability. 

Expense management efforts are also likely to have aided the net income of the company. A decrease in debt level is expected to have reduced the interest expenses of Gorilla Technology in the first quarter.

Other Business Services Sector Releases

Of the other Business Services sector industry players that have reported March-quarter results so far, the bottom-line results of Mastercard Incorporated (MA - Free Report) , The Western Union Company (WU - Free Report) and Visa Inc. (V - Free Report) beat the respective Zacks Consensus Estimate.

Mastercard reported first-quarter 2025 adjusted earnings per share (EPS) of $3.73, which surpassed the Zacks Consensus Estimate by 4.5%. The bottom line improved 13% year over year. Net revenues of the leading technology company in the global payments industry advanced 14% year over year to $7.3 billion. The top line beat the consensus mark by 1.8%. Gross dollar volume (representing the aggregated dollar amount of purchases made and cash disbursements obtained from Mastercard-branded cards) increased 9% on a local-currency basis to $2.4 trillion. 

Cross-border volumes (a key measure that tracks spending on cards beyond the issuing country) rose 15% on a local currency basis. Switched transactions, which indicate the number of times a company’s products have been used to facilitate transactions, improved 9% year over year to 40.1 billion. Value-added services and solutions’ net revenues of $2.8 billion advanced 16% year over year. Mastercard’s clients issued 3.5 billion Mastercard and Maestro-branded cards as of March 31, 2025.

Western Union’s first-quarter 2025 adjusted EPS of 41 cents beat the Zacks Consensus Estimate by 2.5%. However, the bottom line declined 8.9% year over year. Total revenues were $983.6 million, which fell 6% on a reported basis. Additionally, the top line missed the Zacks Consensus Estimate by 0.8%. The adjusted operating margin decreased 100 bps year over year to 19% due to a fall in contributions from Iraq. 

Operating income of $177.4 million declined 8% year over year and lagged our estimate of $185.2 million. The Consumer Money Transfer segment’s revenues fell 9% to $872.9 million. Operating income was $159.3 million, which fell 15% year over year and also missed the consensus estimate. Transactions within the CMT segment grew 3% year over year. Branded Digital revenues, which accounted for 28% of CMT’s first-quarter revenues, improved 7% on a reported basis and 8% on an adjusted basis.

Visa reported second-quarter fiscal 2025 EPS of $2.76, which outpaced the Zacks Consensus Estimate of $2.68 by 3%. The bottom line increased 10% year over year. Net revenues of $9.6 billion improved 9.3% year over year. The top line beat the consensus mark by 0.3%. Visa's payments volume increased 8% year over year on a constant-dollar basis in the fiscal second quarter. Processed transactions (implying transactions processed by Visa) grew 9% year over year to 60.7 billion. 

On a constant-dollar basis, the cross-border volume of Visa rose 13% year over year. Excluding transactions within Europe, its cross-border volume (that boosts a company’s international transaction revenues) also jumped 13% year over year on a constant-dollar basis. Service revenues (depending on the payment volume in the previous quarter) increased 9% year over year to $4.4 billion in the March quarter. Data processing revenues of $4.7 billion grew 10.4% year over year. 

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