- Further Increases Annual Fiscal 2015 Revenue, Margin and Cash EPS Outlook
- Raises Share Repurchase Authorization to $300 Million
Global Payments Inc. (NYSE: GPN) today announced results for its fiscal second quarter ended November 30, 2014.
"We are very pleased to deliver another quarter of solid performance across our direct businesses," said Chief Executive Officer Jeff Sloan. "We also continue to successfully expand our worldwide footprint, one of our key strategies to accelerate growth. During the quarter, we completed the acquisition of Ezidebit, a technology company with direct distribution in Australia and New Zealand and an expanding presence throughout Asia. We also announced an agreement to establish a new joint venture with Bank of the Philippine Islands. This partnership will increase our existing distribution in the highly attractive Philippines market. These transactions help fulfill the vision we set forth in 2012 with the purchase of the minority interest in our then joint venture in Asia."
Second Quarter 2015 Summary
- Revenues grew 10% to $697.3 million, compared to $634.1 million in the second quarter of fiscal 2014.
- Cash diluted earnings per share1 grew 19% to $1.27, compared to $1.07 in the second quarter of fiscal 2014.
- GAAP diluted earnings per share were $1.10, compared to $1.02 in the second quarter of fiscal 2014.
Cameron Bready, Executive Vice President and Chief Financial Officer, stated, "We experienced strong organic revenue growth and margin expansion during the quarter, despite the strengthening of the U.S. dollar, and we continue to see solid performance from our recent acquisitions. Based on these results and our outlook for the remainder of the fiscal year, we are increasing our revenue, margin and cash earnings per share guidance."
The company is raising its annual fiscal 2015 revenue outlook to $2.75 billion to $2.80 billion, or 8% to 10% growth. In addition, Global Payments is increasing its outlook for annual fiscal 2015 diluted earnings per share on a cash basis to a range of$4.75 to $4.83, reflecting growth of 15% to 17% over fiscal 2014, and annual fiscal 2015 GAAP diluted earnings per share is expected to be in the range of $3.99 to $4.07. The company also now expects annual fiscal 2015 core cash operating margins to expand by as much as 50 basis points.
Global Payments' Board of Directors approved a fiscal 2015 second quarter dividend of $0.02 per share payable February 27, 2015 to shareholders of record as of February 13, 2015 and also approved an increase to the existing authorization for the company's share repurchase program, raising the total available authorization to $300 million.