Investing.com - Worldpay surged on Tuesday, propping up financials after posting fourth-quarter results above estimates.
Worldpay's (NYSE:WP) fourth-quarter adjusted earnings of $1.12 a share on revenue of $1.05 billion beat estimates compiled by Investing.com for earnings of $1.08 a share on revenue of $1.04 billion. Its share price rose 7%.
The beat on bottom line was driven by strong performance in the company's payments processing technology solutions segment, which saw revenues nearly double to $443.7 million for the quarter from $225.5 million a year earlier.
"Integrated pay and e-commerce pushed technology solutions growth towards the high end of expectations," said CFRA, an independent research provider.
"The high rates of organic growth and the continued acceleration in technology solutions shows the power of our strategy," said Charles Drucker, chairman and chief executive officer. "Our strong business fundamentals position us for continued growth in 2019."
The global payment processor guided first-quarter adjusted earnings in the range of $0.87 to $0.90 share. Full-year revenue was guided between $4.20 billion and $4.26 billion, representing 7% to 9% growth from last year.
"While initial (earnings) guidance was below prior estimates, its worth noting Worldpay has a track record of beating and raising estimates throughout the year," JPMorgan said in a note to clients.
In the run-up to the quarterly results, some had said Worldpay would benefit from trends toward the adoption of electronic payments and electronic commerce in the international market, keeping it ahead of its rivals.
Worldpay is up more than 15% over the past year.