Global Payments moves to profit in fiscal 3rd quarter, raises full-year outlook

Global Payments posts profit in 3rd-qtr turnaround

ATLANTA — Payment processor Global Payments Inc. on Wednesday said it moved to a fiscal third-quarter profit, driven by steady growth in its services for independent businesses and success in its international businesses.

The company, which processes credit, debit and gift card transactions for merchants and financial institutions, said it earned $48.5 million, or 59 cents per share for the three months ended Feb. 28. That compares with a loss of $106.8 million, or $1.32 per share, in the same period a year before.

Revenue rose 11 percent to $398.5 million from $359.5 million.

Analysts polled by Thomson Reuters, on average, expected profit of 53 cents per share on revenue of $394.7 million.

The loss in the year-ago quarter was due to a decline in value of Global Payments’ money-transfer business. The company said in November it would sell that unit, which was reported as discontinued operations in the latest quarter.

Global Payments raised its forecast for full-year profit and revenue. The company now expects profit in the range of $2.49 to $2.54 per share, up from its earlier projection of $2.35 to $2.46 per share.

Analysts predict profit of $2.47 per share for the fiscal year.

Global Payments raised its revenue growth forecast to a range of 10 percent to 11 percent, implying revenue between $1.62 billion and $1.63 billion. The company previously predicted revenue between $1.58 billion and $1.62 billion.

Wall Street expects $1.62 billion in revenue.

Shares fell 77 cents to close at $45.55. They added $1.63, or 3.6 percent, to $47.18 in aftermarket activity.