Global Payments 2017 earnings report sends share price higher
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Global Payments 2017 earnings report sends share price higher

Financial technology company Global Payments reported strong fourth quarter and full year results for 2017 last week, demonstrating a robust business. Investors liked what they saw – particularly the positive guidance for 2018 – and sent the share price up accordingly.

Global Payments’ share price has appreciated by 15% so far this year

graph 1902 globalpayments

SOURCE: Yahoo Finance

For the full year, Global Payments reported GAAP revenues of $3.98 billion – a significant increase over 2016’s $3.37 billion.  On an adjusted basis, net revenue rose by 24% from the previous year to $3.52 billion. Earnings also improved from 2016, rising by 26% to $4.01 per share, while the company’s operating margin expanded by 120 basis points to 29.9%.

The company’s CEO, Jeff Sloan, commented: "We finished 2017 the way we started it: We generated double digit organic growth across our markets in the fourth quarter. 2017 was a terrific year by any measure, and we delivered the fastest rates of organic adjusted net revenue growth, margin enhancement and adjusted earnings per share growth in our history. We also furthered our strategic objectives to expand our presence in faster growth markets with our agreement today to create a new joint venture with HSBC in Mexico.”

“The combination of our technology-enabled distribution with the continuing expansion of our faster growth geographic markets positions us well to continue our exceptional track record of market leading growth,” Sloan continued. “Finally, we are pleased to raise our growth targets in light of the progress we have made in evolving our business mix over the last several years."

Saying that the company “could not be more pleased” with its performance in 2017, the company’s chief financial officer, Cameron Bready, outlined a positive outlook for the coming year. He said that Global Payments expects adjusted net revenue “plus network fees” to range between $3.88 billion and $3.97 billion (a 12% to 15% rise, year on year), and earnings to come in between $4.95 and $5.15 per share (a 23% to 28% rise, year on year).


Dominion holds Global Payments in its Global Trends Ecommerce Fund.

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