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.