WASHINGTON (dpa-AFX) - Global Payments Inc. (GPN), Tuesday reported a 30 percent increase in profit for the first quarter, driven by a double-digit growth in revenues fueled by strong sales at both North America and International segment.
Based on the first quarter results and due to lower share count going forward, the card processing service provider raised its full-year 2012 earnings guidance, while backing its revenue outlook.
Atlanta, Georgia-based Global Payments' attributable net income for the quarter improved to $64.0 million or $0.79 per share from $49.4 million or $0.61 last year.
Cash earnings for the quarter rose 21 percent to $70.8 million or $0.88 per share from $59.0 million or $0.73 per share last year.
On average, 20 analysts polled by Thomson Reuters expected earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude unusual gains or losses.
Global Payments said its revenues for the quarter grew 23 percent to $542.8 million from $440.1 million last year. Nineteen Wall Street analysts had a consensus revenue estimate of of 517.8 million for the quarter.
Chief Executive Paul Garcia said, 'We delivered strong first quarter results, driven by continued solid execution across all of our businesses, and the December 2010 addition of Spain.'
Global Payments' North America merchant services revenue for the quarter rose 12 percent year-over-year to $378.6 million. International merchant services revenues for the quarter surged 59 percent to $164.1 million, with Europe revenue up 75 percent and Asia-pacific up 18 percent from last year.
Garcia added, 'As a result of our strong performance and the completion of our $100 million share repurchase program, we are raising our earnings expectations for the year.'
Global Payments lifted its full-year 2012 earnings guidance range to $3.13 - $3.20 per share from the prior range of $3.02 - $3.09 per share. The company also raised its full-year 2012 cash earnings guidance range to $3.46 - $3.54 per share, from the previous estimate of $3.35 - $3.43 per share.
Analysts currently expect earnings of $3.06 per share for full year 2012.
As well, the company backed its revenue guidance in the range of $2.10 billion - $2.15 billion for the full year. Analysts currently expect the company to generate revenues of $2.12 billion for fiscal year 2012.
GPN closed Tuesday's trading at $40.85, up $1.52 or 3.86%. The stock further gained $1.15 or 2.82% in after hours trade. Trading volume for the day was 1.1 million shares, above the three-month average volume of 0.8 million shares.
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