WASHINGTON (dpa-AFX) - Global Payments Inc. (GPN) Thursday reported a drop in profit for the third quarter, reflecting special charges. Nonetheless, on an adjusted basis, earnings improved from a year ago and beat estimates, driven largely by revenue growth. Moving ahead, the payment processing company lifted its full year earnings outlook, while it maintained revenue forecast.
Chief Executive Jeff Sloan said, 'We are very pleased with our third quarter financial performance driven by strong execution across all of our businesses and expanding operating margins in North America.'
Global Payments provides electronic transaction processing services for merchants and financial institutions, among others. It acts as a mediator between merchants who accept credit cards and financial services companies.
Global Payments, which provides services to American Express, Discover, MasterCard and Visa, said revenues for the quarter grew 6.5 percent to $616.5 million from $578.7 million last year. Twenty-four analysts polled by Thomson Reuters expected revenues of $618.49 million for the quarter.
Atlanta, Georgia based Global Payments' profit for the quarter dropped to $55.1 million from $58.5 million a year ago. However, on a per share basis, earnings rose to $0.76 per share from $0.75 per share, reflecting lower number of shares outstanding.
Cash earnings for the quarter rose to $69.7 million or $0.96 per share from $67.9 million or $0.87 per share a year ago. Analysts estimated earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.
Moving forward, the company lifted earnings guidance for the full year 2014. Global Payments now expects earning of $3.48 to $3.53 per share and cash earnings of $4.06 to $4.11 per share. Analysts currently expect earnings of $4.10 per share for 2014.
Earlier, Global Payments expected earnings of $3.45 to $3.52 per share and cash earnings of $4.03 to $4.10 per share for 2014.
The company maintained its revenue outlook for the fiscal year 2014 of $2.51 billion to $2.56 billion. Analysts currently expect revenues of $2.55 billion for 2014.
Financial Chief David Mangum said, 'We are delighted with the new share repurchase authorization which, combined with the remaining authorization, now totals $365 million.'
GPN closed Thursday's trading at $71.64, down $2.22 or 0.31%, on the NYSE. The stock further dropped $2.04 or 2.85% in after-hours trade.
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