Upcoming AWS Coverage on Verisk Analytics Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 22, 2017 / Active Wall St. announces its post-earnings coverage on Global Payments Inc. (NYSE: GPN). The Company disclosed its first quarter fiscal 2017 financial results on May 04, 2017. The electronics payment processing Company surpassed top- and bottom-line expectations and raised its forecasts for the year. Register with us now for your free membership at:

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One of Global Payments' competitors within the Business Services space, Verisk Analytics, Inc. (NASDAQ: VRSK), reported on May 02, 2017, its results for the quarter ended March 31, 2017. AWS will be initiating a research report on Verisk Analytics in the coming days.

Today, AWS is promoting its earnings coverage on GPN; touching on VRSK. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, Global Payments' GAAP revenues surged 46% to $919.8 million compared to revenue of $626.3 million in Q1 2016. Adjusted net revenue grew 68% to $803.9 million, in the reported quarter compared to $479.6 million in the year ago same quarter. The Company's revenue numbers surpassed analysts' consensus of $767.8 million.

For Q1 2017, Global Payments' operating margin expanded 110 basis points to 28.5%. On a constant-currency basis, operating margin was 28.8%, representing a 140 basis point increase on a y-o-y basis.

For Q1 2017, Global Payments reported net income of $48.81 million, or $0.32 per share, compared to earnings of $59.91 million, or $0.46 per share, in Q1 2016. The Company's earnings, adjusted for one-time gains and costs totaled $0.85 per share for the reported quarter, topping the Wall Street expectations for earnings of $0.80 per share.

Segment Details

During Q1 2017, Global Payments' North American net revenue grew by 101% to $597.48 million compared to net revenue of $297.96 million in Q1 2016, while operating margin expanded 250 basis points, principally a result of strong organic growth in the Company's direct distribution businesses in the US and the realization of expense synergies from the Heartland's merger.

For Q1 2017, Global Payments' advanced 9.3% to $139.23 million compared to revenue of $127.36 million in Q1 2016. European operating margin of 45.9% declined from the previous year, primarily due to the impacts of foreign currency exchange rates and integration costs associated with the Erste's transaction.

Global Payments' Asia/Pacific region revenue totaled $67.17 million up 24% compared to revenue of $54.28 million in Q1 2016. The segment's operating margins of 31.2%, increase of 60 basis points on a y-o-y basis. Growth in Asia/ Pacific was primarily driven by double-digit organic growth across Hong Kong, Philippines, Singapore, Malaysia, and China as well as Ezidebit, which continues to produce over 20% growth.

Cash Flow

Excluding Heartland's integration costs, Global Payments generated free cash flow of approximately $150 million in Q1 2017. The Company's Capital expenditures totaled $46 million for the reported quarter. Global Payments stated that since the beginning of the year, it has reduced outstanding debt by approximately $85 million.

Outlook

As a result of our strong results for Q1 2017, Global Payments' raised its outlook for calendar 2017. The Company now expects net revenue to range from $3.38 billion to $3.46 billion, reflecting growth of 19% to 22% over 2016. Operating margin is now expected to expand up to 110 basis points. Lastly, Global Payments is projecting adjusted earnings per share to range from $3.78 to $3.95, reflecting growth of 19% to 24% over 2016, which includes a net benefit of approximately $0.03 from our credit facility refinancing.

Stock Performance

On Friday, May 19, 2017, the stock closed the trading session at $90.04, rising 1.43% from its previous closing price of $88.77. A total volume of 1.01 million shares have exchanged hands. Global Payments' stock price advanced 11.17% in the last month, 15.51% in the past three months, and 28.76% in the previous six months. Moreover, the stock surged 29.74% since the start of the year. The Company's shares are trading at a PE ratio of 63.32 and have a dividend yield of 0.04%. At Friday's closing price, the stock's net capitalization stands at $13.71 billion.

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SOURCE: Active Wall Street