Global Payments Posts Higher Q1 Earnings

reported higher earnings for its fiscal first quarter on Wednesday. The Atlanta, Georgia-based company reported quarterly net income of $86.6 million, or $1.32 per share, compared to $75.4 million, or $1.10 per share, in the year-ago period. Excluding items, the company's cash earnings climbed 25 percent to $1.57 per share. Its revenue rose 6 percent to $748.8 million from $704.9 million, while adjusted net revenue surged 8 percent to $537.0 million from $495.2 million. Analysts were expecting earnings of $1.43 per share on revenue of $530.5 million. The average estimate among 29 Estimize users was for earnings of $1.45 per share and revenue of $544.91 million. Cash operating margin expanded 150 basis points to 30.5 percent. "We are delighted with our outstanding first quarter results, which represent an excellent start to the 2016 fiscal year and a continuation of exceeding our expectations across our markets," said Jeff Sloan, Chief Executive Officer. "This performance builds on the momentum we have generated as we continue to invest in our strategy to expand distribution and create competitive differentiation through technology by delivering innovative solutions globally." The company's board declared a two-for-one stock split of its common stock. For the full year, Global Payments now projects adjusted earnings of $5.77 to $5.92 per share. Global Payments shares fell 1.32 percent to close at $115.36 yesterday.