Mizuho Analysis Trend Hits Worldpay Mobile Payments

Mizuho’s analysis barrage continues unabated, as evidenced by recent word dropped our way. Mizuho’s Thomas McCrohan recently took a look at Worldpay, and sent the word on to us accordingly. The news is actually quite good for Worldpay, and proves the company is a major contender on the mobile payments world stage.

McCrohan’s analysis started with the fact that there was something of a rising tide lifting the boats in Worldpay’s area. The Technology Solutions market was up 21 percent, which represented 40 percent of Mizuho’s total revenue. Issuer Solutions, which was eight percent of revenue, was up two percent over last year as well. Hefty growth was further generated from eCommerce overall, and crossborder eCommerce is considered a potential driver therein.

Cost synergies likewise came into play, with merger cost synergies expected up to $50 million by the end of the merger’s third year. Total guidance held steady at $200 million by the end of the third year.

Net revenue guidance was up substantially, going from $3.81 - $3.9 billion to $3.88 - $3.93 billion. Earnings per share guidance was likewise up, increased from $3.71 - $3.81 to $3.93 - $4.00. About the only thing that was down was interest expense expectations, lowered from between $340 and $350 million to $310 to $320 million.

Basically, things are looking not only good, but also better than expected. Worldpay is landing some big earnings and revenue, and at least some of that is related to the sheer growth of the mobile payments market in general. People are picking up mobile payments with increasing frequency of late, and with Worldpay as a payment processor, it’s in a good position to benefit from this on at least some level. The recent connection between Worldpay and Vantiv, started back in January, gives Worldpay a wide range of new capabilities in the field which likely contributed in large part to the hefty gains in revenue.

Like I said previously, a rising tide lifts all boats, and that looks like at least somewhat what happened here. Still, the news is good for Worldpay, and at the end of the day, that’s good news for Worldpay.