Earnings Review and Free Research Report: Vantiv’s Net Revenue Jumped 10%; Adjusted EPS Climbed 19%

Research Desk Line-up: Net 1 UEPS Technologies Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Vantiv, Inc. (NYSE: VNTV), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=VNTV, following the Company’s reporting of its second quarter financial results, on August 09, 2017. The payments processor outperformed top- and bottom-line expectation and also provided its guidance for Q3 2017 and FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Business Services industry. Pro-TD has currently selected Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) for due-diligence and potential coverage as the Company released on August 24, 2017, its financial results for Q4 and full year FY17. Register for a free membership today, and be among the early birds that get access to our report on Net 1 UEPS Technologies when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on VNTV; also brushing on UEPS. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=VNTV

http://protraderdaily.com/optin/?symbol=UEPS
Earnings Reviewed

For the three months ended June 30, 2017, Vantiv’s total revenue increased 12% to $998.8 million compared to $891.2 million in Q2 2016. The Company’s net revenue increased 10% to $530.0 million compared to $480.5 million in the prior year’s corresponding period. Vantiv’s net revenue numbers exceeded analysts’ expectations of $524.5 million.

During Q2 2017, Vantiv’s ‘Other’ operating costs increased 7% to $78.9 million on a GAAP basis compared to $73.6 million in Q2 2016. Excluding transition, acquisition, and integration costs of $5.0 million, ‘Other’ operating costs increased 5% to $74.0 million on a pro-forma basis compared to $70.1 million in the prior year’s same period.

Vantiv’s general and administrative (G&A) expenses increased 3% to $50.7 million on a GAAP basis in Q2 2017 compared to $49.1 million in Q2 2016. Excluding transition, acquisition, and integration costs of $8.3 million as well as share-based compensation of $10.9 million, the Company’s G&A expenses decreased 2% to $31.6 million on a pro-forma basis compared to $32.3 million in the year ago same period.

For Q2 2017, Vantiv’s adjusted EBITDA increased 10% to $256.2 million compared to $233.3 million in Q2 2016. The Company’s depreciation and amortization (D&A) expense increased 20% to $78.4 million on a GAAP basis in the reported quarter compared to $65.2 million in the prior year’s same period. Excluding intangible amortization of $54.3 million, D&A expense increased 34% on a pro-forma basis to $24.1 million compared to $18.0 million in Q2 2016.

On a GAAP basis, net income per diluted share attributable to Vantiv totaled $68.78 million, or $0.42 per share, compared to net income of $59.33 million, or $0.38, in Q2 2016. The Company’s pro-forma adjusted net income per share increased 19% to $0.83 compared to $0.70 in the prior year’s same period. Vantiv’s earnings results beat Wall Street’s expectations of $0.82 per share.

Vantiv’s Segment Results

During Q2 2017, merchant services’ net revenue increased 16% to $449.1 million compared to $387.8 million in Q2 2016, primarily due to a 10% increase in transactions and a 5% increase in net revenue per transaction. On an organic basis, the segment’s net revenue grew low double digits in the reported quarter compared to the prior year’s same period. Merchant services segment’s profit totaled $286.50 million for the reported quarter, up 15% compared to $248.47 million in Q2 2016.

For Q2 2017, Vantiv’s Financial Institution Services’ net revenue fell 13% to $80.9 million versus $92.7 million in Q2 2016. Net revenue growth was impacted by compression from the Fifth Third Bank contract renewal, lapping the contribution from EMV card reissuance and fraud related services in the prior year’s same period, and the de-conversion of a major client. The division recorded segment’s profit of $75.27 million, down 13% compared to segment’s profit of $86.97 million in the year ago corresponding period.

Share Purchase

On August 07, 2017, Vantiv entered into a transaction agreement with Fifth Third Bank pursuant to which Vantiv will purchase 19,790,000 shares of its Class A common stock directly from Fifth Third Bank at a price of $64.04 per share. The total purchase price of approximately $1.27 billion was funded with an additional Term B Loan. In connection with the purchase, Vantiv expects to record a liability of approximately $650 million during the quarter ending September 30, 2017.

Financial Outlook

For Q3 2017, Vantiv is forecasting net revenue in the range of $544 million to $554 million, representing an increase of 11% to 13% on a y-o-y basis. On a GAAP basis, net income per diluted share attributable to Vantiv is expected to be $0.41 – $0.43 for the upcoming quarter. Pro-forma adjusted net income per share is expected to be $0.88 – $0.90 for Q3 2017.

For the full-year 2017, Vantiv is projecting net revenue in the range of $2.10 billion to $2.12 billion, representing an increase of 10% to 11% above the prior year. On a GAAP basis, net income per diluted share attributable to Vantiv is expected to be $1.31 – $1.36 for FY17, while pro-forma adjusted net income per share is expected to be in the band of $3.31 – $3.36.

Stock Performance

At the closing bell, on Wednesday, August 30, 2017, Vantiv’s stock marginally slipped 0.65%, ending the trading session at $70.79. A total volume of 2.16 million shares have exchanged hands. The Company’s stock price soared 13.99% in the last three months, 8.92% in the past six months, and 32.39% in the previous twelve months. Moreover, the stock surged 18.74% since the start of the year. The stock is trading at a PE ratio of 57.41 and currently, has a market cap of $14.13 billion.

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