Global Payments sees ‘exceptional start to 2017’ and raises outlook
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Global Payments sees ‘exceptional start to 2017’ and raises outlook

Global Payments has reported first quarter earnings for 2017, demonstrating impressive business momentum across all its markets, and causing its share price to jump sharply. CEO Jeff Sloan said: “We are off to an exceptional start to 2017, producing double digit organic growth across our markets worldwide in the first quarter.

“In particular, organic growth in our integrated and vertical markets business accelerated, contributing significantly to our strong performance. We have completed the first anniversary of our Heartland partnership, and our combined results underscore our consistency of execution and position us as the leading provider of technology-enabled, software-driven solutions worldwide.”

Post-results, Global Payments’ share price is up 24% year to date

GAAP1005

SOURCE: Yahoo Finance

The company reported GAAP revenues of $919.8 million compared to $626.3 million in the same quarter last year. On an adjusted basis, and also from the same quarter of 2016, Global Payments posted a net revenue increase of 68%, an increase in earnings per share of 33%, and a 110 basis point expansion to operating margin (which stood at 28.5% for the quarter).

As a result of these incredibly strong results, the company has raised its full year outlook for 2017. Cameron Bready, senior executive vice president and chief financial officer, told analysts:

“As a result of our strong first quarter performance and progress with Heartland integration efforts, we are increasing our outlook for 2017. We now expect adjusted net revenue to range from $3.38 billion to $3.46 billion, or growth of 19% to 22% over 2016 and adjusted operating margin to expand by as much as 110 basis points. Adjusted earnings per share are now expected to be in a range of $3.78 to $3.95, reflecting growth of 19% to 24% over 2016, which includes the impact of our recent refinancing.”

Disclosure

Dominion holds Global Payments in its Global Trends Managed Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.