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
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.”
Dominion holds Global Payments in its Global Trends Managed Fund.
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