Global Payments Inc. (GPN) announced it has entered into an accelerated share repurchase agreement with Bank of America N.A. to repurchase an aggregate of $125 million of the company's common stock. The ASR is part of the Board authorized program to repurchase up to $300 million of common stock.
As a result of the repurchase program, the company has raised fiscal 2013 earnings per share guidance, on a cash basis, by three cents to a range of $3.64 to $3.71. Fiscal 2013 GAAP earnings per share, excluding the impact of all intrusion remediation costs, are now expected to be in a range of $3.04 to $3.11. There were no changes to the company's full-year revenue guidance.
Analysts polled by Thomson Reuters expect the company to report fiscal 2013 profit per share of $3.69. Analysts' estimates typically exclude special items.
Global Payments will receive and retire approximately two million shares at the inception of the ASR. The company anticipates that all repurchases under the ASR will be completed no later than May 31, 2013.
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