Financial technology company First Data posted second-quarter results that surpassed Wall Street’s earnings per share (EPS) and revenue expectations.
In a press release, First Data said for the second quarter, the firm reported adjusted EPS of $0.42 a share, exceeding the consensus. Total segment revenue in Q2 was up 2 percent and up 7 percent on an organic constant currency basis. Second-quarter revenue was $2.5 billion, higher than the $2.27 billion Wall Street was looking for and up 2 percent year over year.
Looking out at the remainder of the year, First Data backed its past forecast for EPS of $1.55 to $1.58 a share, total segment revenue up 5 percent to 6 percent and total segment EBITDA 6 percent to 8 percent higher on a constant currency basis. The company expects to end 2019 with $1.5 billion in free cash flow.
The company is not holding a conference call given its merger with Fiserv. Chairman and CEO Frank Bisignano said in prepared remarks, “Our strong results for the first half of the year reflect the great momentum we continue to see around the world in both our merchant acquiring and card processing businesses.”
Bisignano continued, “As we look ahead, we remain focused on executing against our key strategic initiatives including continuously innovating to help our clients, and are confident that the pending merger with Fiserv will enhance our offerings and create tremendous value for our clients and shareholders.”
Earlier this year, Fiserv inked a deal to acquire First Data for $22 billion in an all-stock transaction. At the time the transaction was announced the companies said users would benefit from a “highly complementary combination” that offers a range of payments and financial services, spanning account processing and digital banking, integrated payments and the Clover POS system, among other products and services.
First Data said in the press release that “as of July 23, 2019, the Company and Fiserv received the final required regulatory approvals and non-objections needed to complete the proposed combination. The Company and Fiserv expect to close the proposed acquisition on or about July 29, 2019.”