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What's in the Cards for First Data (FDC) in Q2 Earnings?
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First Data Corporation , a leading provider of electronic commerce solutions, is set to report second-quarter 2016 results on Aug 1. Last quarter, the company posted a positive surprise of 33.3%.
Factors to Consider
First Data has progressed well with its four major initiatives.
On the enterprise business front, the addition of big names such as Travelport, Banco Popular, and First National Bank of Omaha indicates a growing pipeline. Loan processing is turning out to be a new growth area for the company with clients such as Citizens Bank and Bank of Ireland.
On the international business front, European and Brazil acquiring businesses are contributing significantly to overall revenue growth.
As far as expense management is concerned, the leadership targeted saving $200 million gross expense by the middle of 2016. The upcoming results will reveal how far it has succeeded in achieving this target.
On the leadership front, the company is leveraging the strength of its team to make significant improvements in the U.S. SMB business with main focus on bank partnerships, digital strategy, telesales, online self help and value added products.
Our proven model does not conclusively show that First Data will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 28 cents. Hence, the difference is 0.00%.
Zacks Rank: First Data has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Avista Corp. (AVA - Free Report) with an Earnings ESP of +2.33% and Zacks Rank #2.
Alibaba Group Holding Limited (BABA - Free Report) with an Earnings ESP of +28.95% and Zacks Rank #3.
Charter Communications, Inc. (CHTR - Free Report) with an Earnings ESP of +404.76% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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What's in the Cards for First Data (FDC) in Q2 Earnings?
First Data Corporation , a leading provider of electronic commerce solutions, is set to report second-quarter 2016 results on Aug 1. Last quarter, the company posted a positive surprise of 33.3%.
Factors to Consider
First Data has progressed well with its four major initiatives.
On the enterprise business front, the addition of big names such as Travelport, Banco Popular, and First National Bank of Omaha indicates a growing pipeline. Loan processing is turning out to be a new growth area for the company with clients such as Citizens Bank and Bank of Ireland.
On the international business front, European and Brazil acquiring businesses are contributing significantly to overall revenue growth.
As far as expense management is concerned, the leadership targeted saving $200 million gross expense by the middle of 2016. The upcoming results will reveal how far it has succeeded in achieving this target.
On the leadership front, the company is leveraging the strength of its team to make significant improvements in the U.S. SMB business with main focus on bank partnerships, digital strategy, telesales, online self help and value added products.
FIRST DATA CORP Price and EPS Surprise
FIRST DATA CORP Price and EPS Surprise | FIRST DATA CORP Quote
Earnings Whispers
Our proven model does not conclusively show that First Data will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 28 cents. Hence, the difference is 0.00%.
Zacks Rank: First Data has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Avista Corp. (AVA - Free Report) with an Earnings ESP of +2.33% and Zacks Rank #2.
Alibaba Group Holding Limited (BABA - Free Report) with an Earnings ESP of +28.95% and Zacks Rank #3.
Charter Communications, Inc. (CHTR - Free Report) with an Earnings ESP of +404.76% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>