Global Payments provides electronic transaction processing for merchants, financial institutions, corporations, and other entities.
Revenue Jumps 23%
On Oct 4 Global Payments reported first-quarter results that included revenues of $543 million, a 23% increase since the first period last year. Earnings per share came out to $0.88, up 15 cents and 13 cents higher than the Zacks Consensus Estimate. The company has beat estimates 75% of the time in the past 5 years.
In the same release, the company raised its full-year guidance based on the strong performance and stock buy-back program. There are 3 main things to look for in an earnings report; the top line, the bottom line, and guidance. Global Payments pleased investors in all 3 areas.
Analysts Raise the Bar
Since the release, 21 of the 22 analysts have raised full-year estimates. The Zacks Consensus is up a dime to $3.19. Next year' average forecast is up 15 cents, to $3.60.
Last year Global Payments earned $2.77 per share, so the projected growth rates are at 15% and 13%, respectively.
Shares of GPN are going for 14 times forward estimates, which give the stock a PEG ratio of 1.1. The price to sales is at 1.7 and the price to book is just under 3 times.
Global Payments has pulled back sharply, but the estimates are still climbing steadily year over year.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader serviceGLOBAL PAYMENTS (GPN): Free Stock Analysis ReportZacks Investment Research