Shares of Global Payments fall on weak 3Q results
NEW YORK (AP) — Shares of Global Payments Inc. fell Wednesday after the electronic payments processor reported lower-than-expected fiscal third-quarter results.
THE SPARK: For the quarter ended Feb. 28, Global Payments said its net income rose nearly 4 percent to $67.9 million, or 87 cents per share. Revenue grew 8 percent to $578.7 million.
Analysts polled by FactSet expected earnings of 89 cents per share on revenue of $580.4 million.
The company also backed its full-year earnings guidance of $3.64 to $3.71 per share on revenue of $2.36 billion to $2.4 billion. Analysts expect $3.70 per share on revenue of $2.4 billion.
THE BIG PICTURE: Atlanta-based Global Payments processes credit, debit and gift card payments for merchants and financial institutions.
Global Payments said the quarter's revenue jumped in the U.S. and the region that includes Europe and Asia, but fell in Canada.
THE ANALYSIS: The company expects better Canadian results for the current quarter and didn't lower its full-year outlook, a positive sign, said Jefferies analyst Jason Kupferberg. He has a "Buy" rating. Other analysts weren't as optimistic.
THE SHARES: Down $3.06, or 6.2 percent, to $45.95. Over the past 52 weeks, the Atlanta company's shares have traded between $39.37 and $51.24.