Global Payments profit rises, but misses estimates

Global Payments profit rises nearly 4 percent but misses Wall Street projections

Associated Press

ATLANTA (AP) -- Electronic payments processor Global Payments Inc. said Tuesday that its fiscal third quarter earnings rose nearly 4 percent on higher revenue, but the results still missed Wall Street estimates.

The processor of credit, debit and gift card payments for merchants and financial institutions reported net income of nearly $68 million, or 87 cents per share, up from $65 million, or 83 cents per share, in the prior-year period. 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's shares fell $3.01, or 6.1 percent, to $46 in after-hours trading.

Revenue from the company's U.S. operations jumped 11 percent to nearly $336.4 million. Revenue declined 6 percent in Canada, while rising 10 percent at Global Payments' international business —including Europe and Asia-Pacific.

The company reaffirmed 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.