Global Payments Shares Gain After Earnings Top, Google Partnership Announcement

The OECD warns a second virus wave is as likely as not — here’s what that would do to the economic recovery

<div id=”js-article__body” itemprop=”articleBody” data-sbid=”WP-MKTW-0000158705″>

Shares of Global Payments Inc. rose 2.9% in pre-market trading on Monday after the fintech company beat earnings expectations for its latest quarter and also announced a partnership with Alphabet Inc.’s Google. Global Payments GPN, + 0.20% posted fourth quarter net income of $ 183 million, or 61 cents a share, compared to $ 103 million, or 34 cents a share, in the prior year quarter. On an adjusted basis, Global Payments earned $ 1.80 per share, up from the $ 1.62 per share it reported a year earlier and ahead of the $ 1.76 per share that analysts surveyed by FactSet had been projecting. .

Revenue for the fourth quarter fell to $ 1.93 billion from $ 1.99 billion, while analysts were modeling $ 1.90 billion. Global Payments said in a statement that it expects annual execution rate revenue synergies from its merger with TSYS to reach at least $ 150 million by September 2022, up from a previous estimate of $ 125 million. The company also anticipates annual execution rate expense synergies of at least $ 400 million by September 2022, up from a previous estimate that required $ 375 million. The company issued a forecast for the full year calling for between $ 7.5 billion and $ 7.6 billion in adjusted net income and $ 7.75 per share to $ 8.05 per share in adjusted earnings. Analysts followed by FactSet modeled $ 7.58 billion in adjusted earnings and $ 8.00 per share in adjusted earnings. Global Payments announced that its board of directors approved an increase in the company’s buyback authorization, bringing the total amount available to $ 1.5 billion. Through the program, the company plans to carry out an accelerated $ 500 million share buyback program “in the coming days.” The company also announced a strategic partnership with Alphabet’s GOOGL, + 1.71% GOOG, + 1.73% Google, through which the company will provide merchant acquisition services to Google and move much of its acquisition technology to Google Cloud. The move to Google Cloud is expected to generate cost savings over time, Global Payments president Cameron Bready said on the company’s earnings call. The companies will also undertake “joint marketing efforts” through cross-selling. Global Payments shares have gained 14% over the past three months, as the S&P 500 SPX, + 0.39% has risen 11%.