By Reuters | Updated: 31 October 2023
Oct 31 (Reuters) – Global Payments (GPN.N) raised its annual profit forecast and beat Wall Street estimates for third-quarter profit on Tuesday, as strong consumer spending drove growth in its merchant-focused business.
The Atlanta, Georgia-based payments technology firm’s shares climbed 5% in slim trading before the bell.
Global Payments now expects annual adjusted profit of between $10.39 and $10.45 per share, up from a prior range of $10.35 to $10.44 per share.
Customer spending has so far remained resilient, backed by strong wage growth and a tight labor market, even as worries about interest rates staying higher for longer have led to some economic uncertainty.
That has helped companies like Global Payments, whose fees are strongly correlated to spending volumes.
Peer Fiserv (FI.N) last week also raised its full-year profit forecast after its quarterly earnings nearly doubled.
Excluding one-off items, Global Payments earned $2.75 per share in the third quarter. Analysts on average had expected a profit of $2.71 per share, according to LSEG data.
The merchant solutions division, which offers payment services and software to businesses, reported 19% revenue growth, boosted by a strong increase in new integrated partners.
© Thomson Reuters 2023
