Why First Data Corp. Stock Popped Today

What happened

Shares of First Data Corp. (NYSE: FDC) jumped 18.5% on Monday after the payment-processing technology specialist announced strong first-quarter 2018 results and increased its full-year guidance.

Quarterly revenue fell 8% year over year to $2.282 billion -- though that figure was impacted by recently adopted new accounting standards. Segment revenue climbed 11% year over year to $2.08 billion, including 5% organic growth. On the bottom line, that translated to adjusted (non-GAAP) net income of $279 million, or $0.29 per diluted share, up from $0.28 per share in the same year-ago period.

Analysts, on average, were only expecting adjusted earnings of $0.26 per share on revenue of $1.86 billion.

So what

Revenue climbed 15% year over year (on a comparable accounting basis) to $1.318 billion at First Data's core global business solutions segment. Meanwhile, sales from the smaller global financial solutions segment rose 2% to $400 million, and "network and security solutions" revenue rose 4% on a comparable accounting basis to $363 million. First Data's consolidated EBITDA also climbed 14% year over year on a comparable accounting basis, to $730 million.

All the while, the company continued its deleveraging efforts, paying down $186 million in debt during the quarter to bring its total borrowings to $19.012 billion.

First Data chairman and CEO Frank Bisignano stated:

Now what

To be sure, First Data increased its full-year 2018 guidance to call for total segment revenue growth of 6% to 7% (up from 5% to 7% previously), EBITDA growth of 8% to 10% (up from 7% to 9% before), and adjusted earnings per share of $1.42 to $1.47 (up from $1.35 to $1.40).

In the end, there was nothing not to like about this beat and raise from First Data. And it's no surprise to see the market driving shares up in response.

10 stocks we like better than First DataWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and First Data wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of April 2, 2018

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.