Global Payments Earnings: Here’s Why Shares Popped

Global Payments Inc. (NYSE:GPN) delivered a strong profit and beat Wall Street’s expectations, AND topped the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.02%.

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Global Payments Inc. Earnings Cheat Sheet

Results: Net income increased 14.74% to $70.2 million (89 cents per diluted share) in the quarter versus a net gain of $61.18 million in the year-earlier quarter.

Revenue: Rose 10.93% to $588.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Global Payments Inc. reported adjusted net income of 89 cents per share. By that measure, the company beat the mean analyst estimate of $0.87. It beat the average revenue estimate of $574.82 million.

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Quoting Management:  “We are pleased with the increase in the share repurchase authorization and we expect to execute on our buyback plans. With the recently increased financing capacity we completed in the second quarter of 2013, we have significant capital flexibility to drive organic growth, acquisitions and on-going share repurchases,” David Mangum, Senior EVP and CFO…

Key Stats:

Revenue decreased 0.3% from $590.29 million in the previous quarter. Net income increased 50.39% from $46.68 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.88 and has not changed. For the current year, the average estimate is a profit of $3.64, which is the same with that ninety days ago.

Forecasting ahead for 2013, the Global Payments (NYSE:GPN) expects annual revenue of $2,360 million to $2,400 million, or 7 percent to 9 percent growth over fiscal 2012.

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(Company fundamentals provided by Xignite Financials.)

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