Global Payments announces strong results and an acquisition
World leading provider of payment technology Global Payments saw its share price rocket last week when it reported very robust results for its second quarter, and announced an acquisition that should let it penetrate into a new market. The company, which reiterated its guidance on revenue and increased its guidance on earnings per share (EPS), is the “other half” of the ecommerce equation: it provides the tools and infrastructure for merchants to take payments (whereas companies like Visa and Mastercard provide the infrastructure for people to make payments).
Global Payments’ share price jumped on the back of results last week
SOURCE: Yahoo Finance
Global Payments revealed a strong set of numbers last week. Adjusted net revenues plus network fees came in at $982.5 million. That’s an 18% rise against the year-ago quarter’s $831.7 million. Adjusted EPS grew 37% year on year to $1.29. And adjusted operating margin expanded by an impressive 160 basis points to 31.4%.
Talking up these results, and announcing the company’s latest acquisition, Global Payments’ CEO, Jeff Sloan, made the following statement to the press:
"We delivered double digit organic growth across our markets in the second quarter with results accelerating from the first quarter, highlighting ongoing business momentum globally. We are also delighted to announce the expansion of our software-driven payments strategy by entering the healthcare vertical market through an agreement to acquire AdvancedMD, a leading provider of cloud-based SaaS solutions to small-to-medium sized physician practices in the United States. This transaction will further shift our business mix toward technology enablement, enhancing future growth opportunities and highlighting our competitive differentiation through to the next decade."
The company’s chief financial officer, Cameron Bready, added: “We are extremely pleased with our performance in the second quarter and year-to-date period, which positions us well to achieve our 2018 expectations, despite facing incremental pressure from foreign currency exchange rates.” He also said that the company had raised adjusted EPS forecasts for the full year to a range between $5.05 and $5.20 “reflecting growth of 26% to 30% over 2017.”
Dominion holds Global Payments in its Global Trends Ecommerce Fund.
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