Global Payments Lifts FY17 Outlook; Stock Up

(RTTNews) - Global Payments Inc. (GPN) said that it raised its fiscal year 2017 expectation for expense synergies from the Heartland merger to $135 million, a $10 million increase from its prior target.

In the pre-market trade, GPN is currently trading at $78.45, up $4.00 or 5.37 percent.

"As a result of this strong performance and momentum, we are introducing accelerated growth expectations for calendar 2017. We are also raising our expectation for expense synergies from the Heartland merger to $135 million, a $10 million increase from our prior target," said Cameron Bready, Executive Vice President and Chief Financial Officer.

For calendar 2017, the company now expects reported adjusted net revenue of $3.35 to $3.45 billion, representing estimated growth of 18% to 21% over calendar 2016 estimate, or 20% to 24% on a constant currency basis.

The company further expects reported adjusted earnings per share for calendar 2017, of $3.70 to $3.90, which represents estimated growth of 16% to 23% over calendar 2016 estimate, or 21% to 27% on a constant currency basis.

Calendar 2017 adjusted earnings per share expectations represents annualized growth of approximately 17% relative to the company's last fiscal 2017 guide, or approximately 20% on a constant currency basis.

Analysts polled by Thomson Reuters expect the company to report earnings of $3.51 per share and revenues of $3.28 billion for fiscal year 2017. Analysts' estimates typically exclude special items.

The company said in October that it expected 2017 adjusted earnings per share to a range of $3.45 to $3.55, reflecting growth of 16% to 19% over fiscal 2016. For fiscal 2017, Global Payments expected adjusted net revenue to range from $3.2 billion to $3.3 billion, or growth of 47% to 52% over fiscal 2016.