First Data Corp (FDC) Stock: Heading Up On Strong Earnings


First Data Corp (NYSE: FDC) is having an overwhelmingly strong start to the trading session this morning after reporting its earnings for the first fiscal quarter of 2018. Of course, the earnings report proved to be overwhelmingly positive, leading to excitement among investors and strong gains in the value of the stock. Today, we’ll talk about:

  • The earnings report that was released;
  • what we’re seeing from FDC as a result;
  • and what we’ll be watching for ahead.

FDC Makes A Run For The Top On Strong Earnings 

As mentioned above, First Data Corp is having an incredibly strong start to the trading session this morning after the company announced its financial results for the first quarter of 2018. Here’s what we saw from the report:

  • Net Income – During the quarter, FDC generated net income in the amount of $101 million. That works out to $0.11 per share. This figure is a point of strong growth. In the same quarter one year earlier, the company generated $36 million in net income, or $0.04 per share.
  • Adjusted Earnings – In the release, the company reported adjusted earnings in the amount of $0.29 per share. That figure came well ahead of the FactSet consensus estimate of $0.26 per share.
  • Revenue – While earnings proved to be positive, revenue was a slight bit concerning. During the quarter, FDC generated revenue in the amount of $2.3 billion. In the same period one year before, revenue came in at $2.8 billion.
  • Guidance – Following the quarter, First Data announced full-year revenue growth guidance in the range between 6% and 7%. The previous figure was that the company was expecting revenue to grow between 5% and 7% in the year 2018. As far as earnings, the company now projects that earnings for the year will come in the range between $1.42 per share and $1.47 per share, up from previous guidance of $1.35 per share to $1.40 per share.

In a statement, Frank Bisignano, CEO and Chairman at FDC, had the following to offer:

We had an excellent start to 2018. We continued to execute against key initiatives across our business, delivering strong financial performance and positioning us to raise our guidance for the year… We further expanded Clover’s market presence, our cutting-edge ISV business continued to rapidly gain share, our international businesses again delivered strong growth, and our backlog of new enterprise deals continued to expand and ramp.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In the case, of First Data Corp, the news that was released proved to be overwhelmingly positive. Not only did earnings in Q1 beat analyst expectations, the company generated guidance that is well ahead expectations as well. So, it’s no surprise to see that excited investors are sending the stock upward. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:02), FDC is trading at $17.62 per share after a gain of $2.34 per share or 15.31% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on FDC. In particular, we’re interested in seeing if the company does indeed meet its aggressive targets with regard to both revenue and earnings guidance. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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