Boston, MA 10/03/2014 (wallstreetpr) – Global Payments Inc (NYSE:GPN) CEO, Jeff Sloan, has attributed the strong results in the first quarter to its solid business execution, as well as, disciplined capital deployment. The company also lifted its revenue and earnings forecast for the fiscal year 2015.
CEO Comments
The company’s CEO said that it would continue its direct distribution expansion globally and were excited about its deal to buy Ezidebit and the gaming business of Fidelity National Information Services (NYSE:FIS). The two transactions highlighted its tactics to fuel growth in direct sales of attractive markets. Besides, these would also deliver novel solutions and products apart from influencing advantages of technology.
Outlook Boosted
Global Payments Inc (NYSE:GPN) said that it was lifting its adjusted earnings forecast to a range of $4.65 – $4.75 a share for the fiscal year 2015 from $4.52 – $4.62 a share projected by it earlier. On a GAAP basis, it expects earnings to be $3.89 – $3.99 a share.
The company also boosted its revenue estimations to $2.74 – $2.79 billion in the fiscal year 2015 from $2.69 – $2.76 billion predicted by it previously. It attributed the increased confidence to the expected closure of the Ezidebit deal in the second quarter apart from strong financial results in the first quarter. The company projects core cash operating margins to increase by 40 basis points during the same period.
1Q Results
Global Payments Inc (NYSE:GPN) reported net income of $75.37 million for the first quarter, up 16.6% from $64.6 million in the same quarter last year. Its earnings surged 26.4% to $1.10 a share from 87 cents a share in the year-ago quarter. Its cash earnings also advanced 22% to $1.22 a share from $1.00 a share in the prior year quarter.
Revenues witnessed 12% uptick to $704.9 million from $629.7 million in the previous year quarter. While its cost of service increased 12.6% to $259.84 million from $230.75 million, sales, general and administrative expenses advanced 10% to $320.66 million from $291.56 million in the year-ago quarter. Its operating income grew 15.8% to $124.4 million from $107.38 million.
The Global Payments Inc (NYSE:GPN) said that its board has approved a dividend of two cents a share for the first quarter. The record date has been fixed as November 14 for determining the eligible shareholders.
