First Data Corporation | $FDC Stock | Shares Rise On Solid Q2 Earnings & Revenue

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First Data Corporation (NYSE: FDC)


Shares of First Data rose 3% in regular trading Monday, after the company reported strong second-quarter financial results that were above expectations.

During the period, the card processing company posted earnings per share that beat projections by 2 cents while its top line surpassed Wall Street estimates by half a billion.

Despite posting upbeat results, both revenue and earnings per share decreased compared to the year-ago period. The company attributed the drop in earnings per share to the recently enacted tax law.

First Data has topped analyst EPS estimates two times over the last four quarters. Shares of First Data have risen 35% since the year begun, and the increased 22 % in the last twelve months.

FDC Earnings & Outlook

First Data Corporation reported adjusted earnings per share of $0.39 surpassing the consensus estimate of $0.37.

In the same quarter last year, adjusted earnings totaled to $0.40 per share. The company posted net sales of $2.5 billion during the quarter, compared with net sales of $3 billion in last year’s second quarter, and ahead of consensus estimate of $2.4 billion.

Analysts were expecting the firm to post earnings $0.37 per share on net sales $2.21 billion, according to figures compiled by Thompson Reuters.

Looking ahead, First Data expects its full-year revenue to grow by 7% to 8% as opposed to the previous projection of 6% to 7%. As for full-year earnings, the company sees them in the range of $1.42 to $1.47 per share.

Meanwhile, analysts expect it to post yearly earnings of $1.45 per share on net sales of $8.73 billion.

First Data CEO Comments

First Data Chairman and CEO Frank Bisignano issued the following remarks, “We delivered another strong quarter of financial results, driven by solid contributions from each of our business segments. Our continued investment in technology aimed at helping our customers grow with cutting-edge solutions continues to pay off, resulting in excellent performance in several businesses.

Looking ahead, First Data is positioned to build on our first half momentum with continued strong performance in the second half of the year and beyond, supported by our market-leading products and services, strong positioning in key global markets, and commitment to driving value through strategic capital allocation,” added Bisignano.

First Data Corporation Company Profile

First Data Corporation is headquartered in Atlanta, Georgia and is involved in the provision of electronic commerce and payment solutions for financial institutions, merchants and card issuers globally. The company enhances fast, safe and easy payment transactions for its clients.

First Data operates through three segments namely; Global Financial Solutions (GFS), Global Network Solutions (GNS) and Network & Security Solutions (NSS).

The company has a vast product portfolio that includes mobile payment solutions and Internet commerce; merchant transaction processing services; debit, credit, private-label, payroll, gift, and other prepaid card issuing and processing; electronic check acceptance services through TeleCheck as well as fraud protection and authentication solutions.

The company was incorporated in 1989 and its top competitors include; Worldpay Inc. and Chase Paymentech Solutions, LLC. –Reuters