Global Payments Q4 Profit Soars, Yet Misses View; Details Robust Outlook

(RTTNews) - Global Payments Inc. (GPN) Thursday reported fourth-quarter net income of $40.8 million or $0.53 per share, sharply up from $5 million or $0.06 per share last year.

Cash earnings for the quarter were $75 million or $0.98 per share, compared with $76.5 million or $0.97 per share a year ago. Earnings-per-share results for the recent quarter reflect a lower share count.

Global Payments provides electronic payments transaction processing services.

The Atlanta, Georgia-based company posted quarterly revenues of $618.4 million, up 4% from $597 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $1.02 per share on revenues of $639.44 million for the quarter. Analysts' estimates typically exclude special items.

Operating costs for the quarter were lower by 7% at $549 million.

Looking ahead to the fiscal year 2014, the company expects net earnings of $3.35 to $3.42 per share, cash earnings of $3.93 to $4.00 per share, and revenues of $2.51 billion to $2.56 billion.

Analysts currently expect earnings of $3.69 per share on revenues of $2.40 billion for 2014.

CEO Paul Garcia said, "We are focused on delivering a strong fiscal 2014 with cash earnings per share growth of 8% to 10%. This includes a significant step up in annual security costs. Excluding these costs, annual cash earnings per share growth for fiscal 2014 would be 12% to 14%."

Additionally, Global Payments said its Spanish partner, CaixaBank, will be taking a 50% share in Global Payments Brazil.

"This expands our strategic partnership with CaixaBank and will provide us the opportunity to grow more rapidly in this important region with potential further expansion into other Latin American markets over time," the company said.