Global Payments Tops Estimate; Lifts FY Guidance - Update

(RTTNews) - Global Payments Inc (GPN) on Thursday reported a higher first-quarter profit, as the payment solutions provider benefited from a 12 percent increase in revenue and lower income tax expense. Both earnings and revenue for the quarter surpassed Wall Street estimates with ease.

The company lifted its guidance for the full year, based on the first-quarter performance and the beneficial impact of acquisitions.

"Results reflect strong business execution and disciplined capital deployment," said Jeff Sloan, the company's chief executive officer. "We continue to expand our direct distribution globally and are enthusiastic about our agreements to acquire Ezidebit and Fidelity National Information Services' gaming business."

Global Payments shares gained about 3.5 percent in morning trade on the New York Stock Exchange.

Global Payments, based in Atlanta, Georgia, posted quarterly net earnings of of $75.4 million or $1.10 per share, compared with $64.6 million,or $0.87 per share last year.

Cash earnings for the quarter were $1.22 per share, compared with $1.00 per share a year ago. On average, 29 analysts polled by Thomson Reuters estimated earnings of $1.14 per share. Analysts' estimates typically exclude special items.

Revenue for the first quarter rose to $704.9 million from $629.7 million in the prior year. Twenty-five analysts had a consensus revenue estimate of $675.7 million for the quarter.

Growth was seen across all regions. Revenue in the U.S. climbed 13.8 percent from last year, Canada 3.8 percent, Europe 13.7 percent and Asia Pacific 5.9 percent.

Income tax expense for the quarter declined 3.2 percent to 30.1 million.

For fiscal year 2015, Global Payments now expects cash earnings of $4.65 to $4.75 per share and revenue of $2.74 billion to $2.79 billion. It earlier estimated earnings of $4.52 to $4.62 per share and revenue of $2.69 billion to $2.76 billion.

Analysts currently expect earnings of $4.60 per share on revenue of $2.73 billion for the year.

The company declared a quarterly dividend of $0.02 per share.

In Sept, Global Payments agreed to buy Ezi Holdings Pty Ltd (Ezidebit) for AU$305 million. Ezidebit is an integrated payments company focused on recurring payments verticals in Australia and New Zealand. For the partial year of fiscal 2015, Global Payments expect the deal to contribute about $25 million in revenues.

On Tuesday, Global Payments agreed to buy gaming assets from Certegy Check Services Inc, a part of of Fidelity National Information Services FIS, related to its business for licensed gaming operators.

Global Payments stock is trading at $71.33, up $2.54 or 3.69%, on a volume of 0.85 million shares on the NYSE.