How Much Can First Data Grow In 2018?

by Trefis Team
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First Data Corporation, a global payments technology solutions company, has seen consistent growth over the past few years. Its business is largely driven by multi-year contracts that allow it to achieve consistent recurring revenues. The company has also made solid acquisitions in recent years, which have allowed it to improve and expand its product offerings. The BluePay acquisition, especially, should enhance First Data’s tech prowess. These factors should all help the company continue its solid growth in 2018. Below we discuss the factors that should drive that growth in more detail.

For more information, see our interactive breakdown of First Data.

Performance in 2018

We expect First Data’s revenue to exceed $12 billion in 2018, with EPS of over $1.40. We also expect its segment operation margin to increase. This will be largely driven by:

  • Global Business Solutions further expanding in North America due to increase in Equipment and Software sales
  • Continuation of long-term multi-year contracts
  • More wins in the Enterprise business and strong partnerships

 

Global Business Solutions

The Global Business Solutions segment has seen some mixed results in recent years. However, we expect it to bounce back going forward. Although First Data experiences seasonality, with Q1 being the weakest, multi-year long-term contracts will continue to be a strength, and we expect the Latin America business to continue performing well. On the product side, we expect Clover-powered POS devices to gain traction. Additionally, deals with Apple – to sell Clover-powered devices on the Apple website – and with Amazon will further fuel revenues. We expect that revenue from Global Business Solutions will see modest growth over 2018.

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