Mobile Payments Firm Worldpay’s Results Come Under KBW Examination

May 3, 2019         By: Steven Anderson

Having just talked about Worldpay’s former parent firm Royal Bank of Scotland, it was something of a shock to see word from Keefe, Bruyette & Woods (KBW) arrive about this company’s latest results for the first quarter of the 2019 fiscal year. The results themselves, meanwhile, delivered welcome results for investors and suggest that Worldpay has an excellent place in the overall mobile payments pantheon.

Worldpay reported its adjusted earnings per share (EPS) at $0.94, which was comparable to KBW’s own estimates, and beat the Street consensus set at $0.89. Driving these revenues were a combination of factors, including higher revenues accounting for $0.05 per share, reduced taxes ($0.01 per share), and in something of a new twist, a reduced interest expense which added an extra $0.01 per share as well.

The news wasn’t all sunny for Worldpay, however, as higher operating expenses rose to take $0.03 per share out of the equation. Still, given that Worldpay actually raised its per-share outlook by $0.10 for 2019 at one point, things are certainly looking bright.

KBW, meanwhile, pointed out that the guidance for the second quarter is already stronger than KBW analysts’ earlier projections. Though it’s lighter on revenues, the EPS estimates are up fairly well. Reports noted that organic net revenue growth was nine percent pro forma, and with adjustments in “FX and cryptocurrency grow-over,” the growth rate slowed just a bit from 10 percent seen in the fourth quarter of 2018. Though that’s not so far out of line; surely any mobile payments service would see a decline going from holiday shopping season to the deep dark depths of January.

Basically, it looks like Worldpay’s seeing some substantial gains, and considering how long it’s been a part of the field overall, it’s not too surprising. It’s had plenty of room to learn, and grow accordingly. It’s seen the ups and downs, it’s able to anticipate and work around at least some of them, and in the process, it’s built itself a respectable line of business.

Looking for future growth out of Worldpay isn’t out of line, either. Though the market is approaching saturation—if it’s not already there—Worldpay has established itself as a force to be reckoned with for some time to come.