In terms of headline numbers, adjusted earnings per share came in at $1.57, three pennies better than expected.
Total 4Q revenues were $3.3 billion, meeting expectations.
Drilling down into segments, Merchant Solutions grew by 10 percent to $1.1 billion, as measured on an organic rate. The Banking Solutions segment was up 5 percent on an organic basis to $1.5 billion. Capital markets was up 8 percent to $669 million.
Management said on the conference call with analysts that growth was seen in eCommerce and integrated payments in the Merchant Solutions segment.
Banking results saw a tailwind from recurring revenues and new sales conversion.
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Management also said that the integration of Worldpay has exceeded initial synergy targets, having met the $400 million target within five months of close.
The company has increased its 2020 cost synergy target to $600 million.
The 2022 synergy target has been boosted to $675 million.
CEO Gary Norcross said that the organic growth rate for the company overall was 7 percent.
He told analysts that “we continue to see increasing demand for SaaS deployment” and added that the company is “ balancing that demand with our on-premise license business.”
In further detail on the Worldpay acquisition, Norcross said that “we are also accelerating our achievement of revenue synergies. While initially expecting to reach $100 million of annualized revenue synergies by the end of 2020, we have already achieved $80 million in annual run-rate synergies in the first five months after closing.” As a result, he said the company is increasing its revenue synergy targets to $200 million exiting 2020, and $550 million exiting 2022.
Norcross said later in the call that the company raised its synergy targets in the wake of cross-selling winds.
“I can honestly tell you the pipeline is full as I’ve ever seen for core banking on a global basis for next-generation capabilities,” Norcross told analysts. Chief Financial Officer Woody Woodall said that eCommerce and integrated payments growth were both in the mid to high teens percentages.
