Earnings Review: Global Payments Inc. (NYSE:GPN)

Global Payments Inc. (NYSE:GPN) reported earnings for the three months ended Feb2016 on April 06, 2016. The company earned $0.7 per share on revenue of $496.97M. Analysts had been modeling earning per share of $0.67 with $493.67M in revenue.

Global Payments Inc. (GPN) on April 06, 2016 announced results for its fiscal third quarter ended February 29, 2016.

“We delivered strong financial results for the quarter, accelerating growth across our key markets. We are especially pleased with our performance in North America and Europe, with sequentially higher adjusted net revenue growth in the United States direct channel and the United Kingdom,” said Chief Executive Officer Jeff Sloan. “We also grew margins in each region, highlighting solid execution.”

Sloan continued, “We are delighted with the progress we have made on the partnership with Heartland Payment Systems and look forward to closing the transaction later this month. The combination with Heartland will transform Global Payments into the leading provider of payments technology solutions worldwide.”

Third Quarter 2016 Summary

• Adjusted net revenue grew 6% to $497.0 million, compared to $467.8 million in the third quarter of fiscal 2015. On a constant currency basis, adjusted net revenue grew 11%.


• Cash diluted earnings per share grew 17% to $0.70, compared to $0.60 in the third quarter of fiscal 2015. On a constant currency basis, cash diluted earnings per share grew 28%.


• Cash operating margin expanded to 28.7%, a 50 basis point increase over the third quarter of fiscal 2015. On a constant currency basis, cash operating margin increased 110 basis points.


• GAAP revenues were $679.9 million, compared to $665.0 million in the third quarter of fiscal 2015, and diluted earnings per share were $0.53, compared to $0.46 in the prior year.

“We exceeded our expectations for organic adjusted net revenue growth, cash operating margin expansion and cash earnings per share growth for the quarter,” stated Cameron Bready, Executive Vice President and Chief Financial Officer. “As a result of this performance and despite the impacts of continued foreign exchange headwinds, we are pleased to again raise our expectations for fiscal 2016.”

Global Payments Inc. earnings per share showed an increasing trend of 22.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 349%.Analysts project EPS growth over the next 5 years at 23.65%. It has EPS annual growth over the past 5 fiscal years of 10.3% when sales grew 11. It reported 2.2% sales growth, and 14.2% EPS growth in the last quarter.

The stock is trading at $77.69, up 53.32% from 52-week low of $50.7. The stock trades down 0.22% from its peak of $78.3 and 0.89% above the consensus price target of $78.38. Its volume clocked up at 1.88 million shares which is lower than the average volume of 2.31 million shares. Its market capitalization currently stands at $9.97B.