correction: correct the earlier article to say the earnings increased, not declined.
Global Payments Inc. (GPN) Tuesday reported higher earnings in the third quarter on the back of increased revenues, but earnings per share missed the Street estimates. Revenue growth was seen in the U.S. and Europe, while Canada fared poorly.
Shares of the company slid more than six percent in after-hours trade on the New York Stock Exchange.
Moving forward, Global Payments maintained its cash earnings and revenue outlook for fiscal year 2013, but indicated GAAP earnings would be impacted by intrusion remediation costs.
Global Payments processes payment card, check, and eCommerce transactions for over one million merchant locations. The Atlanta, Georgia-based company's quarterly revenues increased 8 percent to $578.7 million from $533.5 million in the prior year.
On average, 24 analysts polled by Thomson Reuters estimated revenues of $580.28 million for the quarter.
Merchant services revenues from the U.S. rose 11 percent and accounted for most of the business. Canada dropped 6 percent, while Europe gained 13 percent. Asia Pacific edged up 2 percent.
The company's quarterly earnings increased to $58.5 million or $0.75 a share from $57.9 million or $0.73 a share a year ago.
Cash earnings for the quarter totaled $0.87 a share, compared to $0.83 a share last year. Analysts, on consensus, estimated earnings of $0.89 a share for the quarter.
For fiscal year 2014, the company continues to expect revenues of $2.36 billion to $2.4 billion and earnings, on a cash basis, of $3.64 to $3.71 a share. GAAP earnings are expected in the range of $2.87 to $2.94 a share, to reflect the impact of net intrusion remediation costs of $0.17 a share. Analysts, on consensus, estimate earnings of $3.70 a share, on revenues of $3.40 billion, for the year.
The company expects data remediation expense of about $20 million for fiscal year 2013.
Global Payments closed Tuesday at $49.01, down 0.26%, on a volume of 0.7 million shares. In after hours, the stock dropped 6.14%.
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