Global Payments Beats By a Penny; Raises Guidance for FY2007

Electronic transaction processor Global Payments Inc. reported net income slightly above analyst expectations and raised its earnings forecast for FY2007 by $0.05 on the lower end of the range. By the numbers, Global Payments reported net income of $34.3 million, good for EPS of $0.42 after one-time items, versus a profit of $30.1 million (EPS of $0.36) during the prior-year period. Revenue also rose to $260.4 million, up from $225.2 million a year earlier. Thomson Financial estimates predicted EPS of $0.41 after one-time expenses on revenue of $264 million. The company raised its outlook after items for FY2007 to a range of $1.74 to $1.76 per share, up from an earlier prediction of $1.69 to $1.75, for fiscal 2007, while lowering its revenue expectations to a range of $1.050 billion to $1.057 billion, down from a previous forecast of $1.057 billion to $1.069 billion. Analysts expect earnings of $1.73, excluding exceptional items, on revenue of $1.064 billion.

Sources: Press Release, MarketWatch (i), (ii), Reuters
Commentary: Global Payments: At The End Of Its Run? [April '06]
Stocks/ETFs to watch: Global Payments Inc. (GPN). Competitors: First Data Corp. (FDC) , Total System Services (TSS)

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