Mobile Payments Analysis Leader Mizuho Releases Word on First Data

There’s a lot going on in the mobile payments market space, and some points emerge at different times. First Data Corporation recently released its fourth quarter results, and our friends out at Mizuho took a look at the word out of the company. Mizuho promptly sent out its own analysis, and what both it and the numbers had to say about First Data is telling to say the least.

The good news is, immediately, that the revenue growth seen meshed with earlier projections from Mizuho. It saw around 4.5 percent growth total, on par with expectations, and also not showing much deviation from earlier word issued via preliminary report back in January.

What’s more, several other metrics were on par with expectations, including an earnings per share (EPS) range, growth in the earnings before interest, taxes, depreciation and amortization (EBITDA) figures, and even cash flow expectations. Plus, just to top it off, First Data offered some further quantification of potential impacts to its future revenue streams, including issues related to divestitures and FX issues.

Those hoping for more information will be left out of the loop, as no conference call has been scheduled, and the upcoming transaction between First Data and Fiserv is expected to complete in the second half of 2019. The January disclosures mentioned this fact as well, and it remains unchanged. Once concluded, First Data shareholders will hold 42.5 percent of the combined firm.

Essentially, the news is good, or at least reasonably so. There were no serious problems—despite a few revenue “headwinds” to watch out for—and most results were in line with expectations, which is a positive outcome for nearly any company. While the loss of the conference call may be a source of concern, the word issued so far is reasonable enough for most anyone. Knowing about those potential issues now may be a good way to fend them off going forward, and with the upcoming deal about to conclude, it could put the company on even better footing.

Basically, things look sound for First Data. How long they’ll stay that way, however, is anyone’s guess.