US Equity Market Update for October 7, 2015
Global Payments’ price movement
Global Payments (GPN) has a market cap of $8.3 billion. Global Payments’ YTD (year-to-date) price movement is rising day by day. After the earnings report for 1Q16, Global Payments rose by 11.1% to close at $128.20 per share as of October 7, 2015. The revenue and net income rose by 6% and 32.6% in 1Q16. The price movement on a weekly, monthly, and YTD basis is 11.7%, 13%, and 58.9%, respectively. It’s trading at 10% on a trailing five-day basis.
Technically, it has broken the support of the 20-day and 50-day moving averages. Currently, it’s trading at 11.6% above the 20-day moving average, 13% above the 50-day moving average, and 27.4% above the 200-day moving average.
The First Trust Mid Cap Growth AlphaDex ETF (FNY) invests 1.7% of its holdings in Global Payments. FNY tracks a tiered and equal-weighted index of mid-cap growth stocks selected by S&P’s AlphaDex selection methodology from the S&P 400 Index. FNY’s YTD price movement is -2.5% as of October 6, 2015.
Global Payment’s competitors and their market caps are:
- PayPal Holdings (PYPL) – $39.5 billion
- Fidelity National Information Services (FIS) – $19.8 billion
- Vantiv (VNTV) – $8.8 billion
- Heartland Payment Systems (HPY) – $2.4 billion
Global Payments’ performance in 1Q16
Global Payments reported net revenue of $748.8 million—a rise of 6% compared to net revenue of $706.6 million in 4Q15. The revenue for North America, Europe, and Asia-Pacific rose by 5.5%, 8.7%, and 2.4%, respectively, in 1Q16. The net income and EPS (earnings per share) rose to $86.7 million and $1.32 per share in 1Q16—a rise of 32.6% and 33.3% on a quarterly basis. The cash and cash equivalents and current ratio rose to $803.3 million and 1.1 in 1Q16—a rise of 23.4% and 4.6% on a quarterly basis. The debt-to-equity ratio reduced by 13% in 1Q16. The company also announced a two-for-one stock split of the company’s common stock. It will be effected in the form of a stock dividend of one additional share of common stock for each outstanding share of common stock.
In 1Q16, some of Global Payments’ key activities are:
- Global Payments completed the acquisition of gaming assets from Check Services—a subsidiary of Fidelity National Information Services (FIS)—related to its business for licensed gaming operators.
- Global Payments announced that it will roll out the OptBlue program for American Express Card acceptance in Canada on June 24, 2015.
- The company offered its merchants in the United Kingdom the ability to accept Apple Pay. It transforms mobile payments with an easy, secure, and private way to pay.
- Global Payments, CaixaBank, Erste Group Bank AG, and Eastern Europe (CEE) announced an agreement to form a joint venture to provide merchant acquiring and payment services in three core locations in Central and Eastern Europe—the Czech Republic, Slovakia, and Romania.
- The company announced the completion of a joint venture with Bank of the Philippine Islands (BPI)—a leading commercial bank in the Philippines.
- Apriva and Global Payments announced an agreement to deliver white label mobile payment solutions with EMV to Global Payments’ US customers.
About Global Payments
Global Payments provides payment technology services that deliver innovative solutions driven by customers’ needs globally. The company operates in North America, Europe, the Asia-Pacific region, and Brazil.
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