First Data Corporation is set to report fourth-quarter 2017 results on Feb 12.
The company has a Zacks Rank #3 (Hold) and an Earnings ESP of +1.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates.
We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.
First Data’s earnings surprise history has been decent as the company beat estimates in two of the last four quarters, with an average positive surprise of 3.01%.
We observed that First Data shares have rallied 9.4% in the past 12 months, outperforming its industry’s gain of 8.8%.
Q3 Highlights
In the third quarter, the company reported earnings of 40 cents, reflecting an 18% increase from the year-ago quarter. The figure was in line with the Zacks Consensus Estimate.
Consolidated revenues that include transaction and processing fees, product sales, reimbursable debit network fees, postage and other were $3.1 billion, up 5% year over year.
What We Are Expecting in Q4
First Data continues to expand its enterprise business. The company differentiates itself by consistently offering new features and solutions to existing clients and making continuous efforts to expand its client base. It continues to maintain its leading position in the bank-acquiring channel through strategic partnerships.
First Data is improving on its SMB direct business, which is expected to boost its GBS North American business. The company has been improving on both merchant and sales force attrition.
First Data completed the acquisition of one of its largest distribution partners, BluePay Holdings, Inc. last Dec.The deal will create a number of opportunities for First Data in the ERP space and help it better manage cash and other services for clients. The deal couldcontribute to First Data’s adjusted earnings per share (EPS) in the fourth quarter.
Conclusion
Overall, we believe that First Data’s focus on globalizing its offerings, cost management, strategic partnerships, along with its healthy business around large and small banks, will drive growth.
Other Stocks to Consider
Here are a few stocks that you may want to consider as our model shows that these too have the right combination of elements to deliver a positive earnings surprise.
Applied Materials (AMAT - Free Report) , with an Earnings ESP of +0.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA (NVDA - Free Report) , with an Earnings ESP of +4.13% and a Zacks Rank #2.
Advanced Micro Devices (AMD - Free Report) , with an Earnings ESP of +8.72% and a Zacks Rank #3.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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First Data Corporation is set to report fourth-quarter 2017 results on Feb 12.
The company has a Zacks Rank #3 (Hold) and an Earnings ESP of +1.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates.
We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.
First Data’s earnings surprise history has been decent as the company beat estimates in two of the last four quarters, with an average positive surprise of 3.01%.
We observed that First Data shares have rallied 9.4% in the past 12 months, outperforming its industry’s gain of 8.8%.
Q3 Highlights
In the third quarter, the company reported earnings of 40 cents, reflecting an 18% increase from the year-ago quarter. The figure was in line with the Zacks Consensus Estimate.
Consolidated revenues that include transaction and processing fees, product sales, reimbursable debit network fees, postage and other were $3.1 billion, up 5% year over year.
What We Are Expecting in Q4
First Data continues to expand its enterprise business. The company differentiates itself by consistently offering new features and solutions to existing clients and making continuous efforts to expand its client base. It continues to maintain its leading position in the bank-acquiring channel through strategic partnerships.
First Data is improving on its SMB direct business, which is expected to boost its GBS North American business. The company has been improving on both merchant and sales force attrition.
First Data completed the acquisition of one of its largest distribution partners, BluePay Holdings, Inc. last Dec.The deal will create a number of opportunities for First Data in the ERP space and help it better manage cash and other services for clients. The deal couldcontribute to First Data’s adjusted earnings per share (EPS) in the fourth quarter.
Conclusion
Overall, we believe that First Data’s focus on globalizing its offerings, cost management, strategic partnerships, along with its healthy business around large and small banks, will drive growth.
Other Stocks to Consider
Here are a few stocks that you may want to consider as our model shows that these too have the right combination of elements to deliver a positive earnings surprise.
Applied Materials (AMAT - Free Report) , with an Earnings ESP of +0.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA (NVDA - Free Report) , with an Earnings ESP of +4.13% and a Zacks Rank #2.
Advanced Micro Devices (AMD - Free Report) , with an Earnings ESP of +8.72% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geopolitics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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