Global Payments beats on the bottom line, driven by growth in “largest target markets”
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 beats on the bottom line, driven by growth in “largest target markets”

Global Payments, a world-leading provider of payment tech and software solutions for merchants, reported first-quarter earnings last week that demonstrated powerful growth in some of its key targeted industries. The company, which has seen its share price outperform so far this year, beat on earnings and met the Street’s expectation on revenue. It also issued positive guidance for the full year.

Global Payments’ share price has risen by 41% so far this year

08 05 global payments

Source: Yahoo Finance

Global payments said that revenue for the quarter came in at $1.04 billion, meeting analysts’ expectations. But earnings overshot the Street’s predictions, coming in at $1.34 per share (consensus estimates were for earnings of $1.22 per share). The company said it’s adjusted operating margin also expanded by 110 basis points to 31.5%.

Speaking to the strength of these results in an announcement, CEO Jeff Sloan said: “2019 is off to a terrific start as we delivered double digit growth in the first quarter, demonstrating the ongoing durability and resiliency of our differentiated business model. We continue to expand our competitive moat through a balanced technology-enabled strategy across multiple vertical markets, virtual and physical payment worlds and faster growth geographies.”

“The success of these investments is clearly evident in our largest target addressable markets, such as restaurants and food service, in which our payment and software capabilities span the full spectrum of merchant sizes and provide our customers with end-to-end technology solutions to better manage their businesses.”

The company also issued full year guidance for 2019, with chief financial officer Cameron Bready saying: “We are pleased with the outstanding financial results we delivered for the first quarter, despite the impact of adverse foreign currency exchange rates. This strong execution and performance provides us with confidence in our increased financial outlook for the full year. The company now expects adjusted net revenue plus network fees to range from $4.44 billion to $4.49 billion, reflecting growth of 12% to 13%, or 14% to 15% on a constant currency basis, over 2018 results and adjusted earnings per share to be in a range of $5.95 to $6.12, reflecting growth of 15% to 18% over 2018. Annual adjusted operating margin for 2019 is now expected to expand by up to 80 basis points.”

Disclosure

Dominion holds Global Payments in its Global Trends Ecommerce 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.