Global Payments Boosts 2015 Outlook As Q2 Results Top Estimate

(RTTNews) - Payment solutions provider Global Payments, Inc (GPN) reported Thursday a profit for the second quarter that edged up from last year, reflecting revenue growth across most of its operating regions. Both cash earnings per share and quarterly revenues topped analysts' expectations.

The company also raised earnings and revenue guidance for the full-year 2015, citing year-to-date performance and the beneficial impact of acquisitions.

"We are very pleased to deliver another quarter of solid performance across our direct businesses. We also continue to successfully expand our worldwide footprint, one of our key strategies to accelerate growth," CEO Jeff Sloan said in a statement.

The Atlanta, Georgia-based electronic payments transaction processing services provider posted net income of $74.78 million or $1.10 per share for the second quarter, higher than $73.90 million or $1.02 per share in the prior-year quarter.

Excluding items, cash earnings for the quarter were $86.01 million or $1.27 per share, compared to $77.89 million or $1.07 per share in the year-ago quarter.

On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $1.20 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 10 percent to $697.29 million from $634.12 million in the same quarter last year, and topped twenty-five Wall Street analysts' consensus estimate of $692.55 million.

Revenues from North America merchant services grew 9.3 percent to $489 million, and revenues from International merchant services increased 11.5 percent to $209 million from last year.

Growth was seen across all operating regions, except Canada. Revenue increased 11.0 percent in the U.S., 20.7 percent in the Asia-Pacific and 8.9 percent in Europe from last year. However, revenues in Canada declined 1.5 percent from a year ago.

Additionally, the company's board approved a second-quarter dividend of $0.02 per share, payable on February 27, 2015 to shareholders of record as of February 15, 2015.

The company also approved an increase to the existing authorization for the company's share repurchase program, raising the total available authorization to $300 million.

Looking ahead to fiscal 2015, Global Payments now expects cash earnings in a range of $4.75 to $4.83 per share on projected revenues between $2.75 billion and $2.80 billion, up from the earlier estimated cash earnings in the range of $4.65 to $4.75 per share and revenues between $2.74 billion and $2.79 billion.

Street is currently looking for full-year 2015 earnings of $4.73 per share on annual revenue of $2.78 billion.

During the second quarter, the company said it completed the acquisition of Ezidebit, a technology company with direct distribution in Australia and New Zealand and an expanding presence throughout Asia.

The company also agreed to establish a new joint venture with Bank of the Philippine Islands, which will increase its existing distribution in the highly attractive Philippines market.

In Thursday's regular trading session, GPN is currently trading at $84.56, up $5.26 or 6.64% on a volume of 0.37 million shares.