TSYS, the payments processor, reported net income of $1.13 a share, beating the Street by 13 cents, while revenues of $987.2 million were up 18.5 percent year on year, beating estimates by $76.8 million. The company said that it gained momentum across its three business segments.
The results came amid the completion of the company’s buy of Cayan for $1.05 billion — that firm has business with roughly 70,000 merchants across the US.
“We are off to an outstanding start to 2018, producing diluted earnings per share growth of over 35 percent for the quarter,” Chief Executive Officer Troy Woods said in a statement that accompanied the release. “We delivered exceptional performance across all three of our segments and were especially pleased with the completion of our Cayan acquisition during the quarter.”
Drilling down a bit, its Issuer Solutions segment posted a top line of $423.6 million, up 9.4 percent year on year. Merchant Solutions gained 21.8 percent over the same time frame, to $317 million, while Netspend at 6.6 percent growth came in at $210 million. The company’s supplemental materials showed accounts on file at 578.6 million, gaining 8.7 percent for the issuer segment, representing a record. Netspend active debit cards, according to a presentation by the company that came in tandem with the earnings call, stood at 5.2 million cards, a record.
The Merchant Solution segment showed 1.3 billon POS transactions, up 18.8 percent. Net revenues per transaction were a bit more than 23 cents, up 2.6 percent year on year.
For details on accounts on file, the company said that it had eight percent growth in consumer accounts on file and 10.6 percent growth in commercial accounts.
The company boosted its revenue range for the 2018 to a range of $3.7 billion and $3.8 billion, up 9 percent to 12 percent. As for the bottom line, the firm sees adjusted earnings per share to be between $4.25 and $4.35.