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Global Payments Q1 Profit Jumps 39%

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Global Payments Inc. (NYSE: GPN) announced after the market close on Tuesday that fiscal first quarter net income jumped 39%, driven by strong demand for its services in Europe and North America. Shares rallied about 7% in aftermarket hours as the results were better-than-expected. The Company also lifted its full-year earnings outlook by 5 cents a share but kept its revenue expectation unchanged.

Separately, Global Payments also announced a $100 million worth accelerated share buyback program.

For the latest period, the Atlanta Georgia based company reported a net income of $64.6 million or 87 cents a share compared to a net income of $46.7 million or 59 cents a share, in the year-earlier quarter.

Stripping out onetime items, the adjusted or non-GAAP earnings stood at $74 million or penny a share compared to $69 million or 87 cents a share, in the same period of last year. Analysts polled by Thomson Reuters had expected earnings of 95 cents a share.

Revenue climbed 7% to $630 million from $590 million, in the same period of last year. Analysts’ consensus estimate was for revenue of $623.79 million.

Revenue from the U.S., its key market, rose 5.2%; increased 7% in Canada while in Europe it climbed 11.5%. In Asia Pacific revenue rose 2.8%.

For the full-fiscal year, the Company now expects net earnings to be in the range of $3.40 to $3.47 and core earnings of $3.98 to $4.05. Revenue is expected in the range of $2.51 billion to $2.56 billion.

Analysts’ expectation was for earnings of $3.94 per share on revenue of $2.52 billion.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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