Global Payments sees strong second quarter
Worldwide cashless transaction enabler Global Payments reported second quarter earnings last week, demonstrating a strong business and beating analysts’ expectations. The company said its GAAP revenues came in at $962.2 million for the quarter, compared to $842.6 million in the same quarter of 2016. Diluted earnings per share (EPS) were $0.44 compared to $0.42 a year ago, and operating margin rose from 7.3% to 13.7% over the same period. Adjusted net revenue grew by 18.4%, adjusted EPS was up 24%, and adjusted operating margin grew to 29.2%.
Global Payments’ share price is on a tear this year, up 40% so far
SOURCE: Yahoo Finance
Jeff Sloan, chief executive officer of Global Payments, said:
“We delivered another outstanding quarter highlighted by double digit organic net revenue growth across our markets, building on the momentum of the last several quarters. Our results reflect strong execution worldwide and our strategy of continuing to invest in and grow our technology-enabled businesses. Today’s agreement to acquire the communities and sports divisions of ACTIVE Network adds complementary vertical-specific solutions to our portfolio and positions us well to continue to gain share going forward.”
The company’s chief financial officer, Cameron Bready, added:
“We are delighted with our performance in the second quarter and year-to-date period, which reflects continued strong execution across our businesses and positions us to increase our outlook for 2017 results. We now expect adjusted net revenue to range from $3.40 billion to $3.475 billion, or growth of 20% to 22% over 2016 and adjusted operating margin to expand by as much as 120 basis points. Adjusted earnings per share are now expected to be in a range of $3.85 to $4.00, reflecting growth of 21% to 25% over 2016. Our outlook for calendar 2017 does not include any impact from the ACTIVE Network acquisition, which we expect to be immaterial to 2017 adjusted earnings per share.”
Dominion holds Global Payments in its Global Trends Ecommerce Fund.
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