Global Payments (NYSE:GPN) fell more than 4% afterhours upon releasing late Monday worse-than-expected first-quarter earnings, as improved demand in Asian and US markets could not wholly offset higher expenses, though the company still reaffirmed its full-year view.
The credit card processor posted net income of $49.7 million, or 61 cents a share, compared with $57.83 million, or 71 cents a share, in the same quarter last year.
Excluding special items, the company’s earnings were 61 cents a share, missing average analyst estimates polled by Thomson Reuters 69 cents.
Revenue for the Atlanta-based company was $440.1 million, up 7% from $409.9 million a year ago, and narrowly beating the Street’s view of $438.55 million.
“Despite a challenging macroeconomic environment, we delivered solid results and are on target to achieve our full year estimates,” said Global Payments CEO Paul R. Garcia. “Our first quarter results reflect strong growth in the U.S. and Asia Pacific, and we continue to execute our plans for long-term growth and operating leverage in all of our businesses.”
Positive sales growth was offset by a 12% increase in operating expenses, up to $358 million from $320.6 million a year ago.
The company continues to expect fiscal 2011 revenue of $1.735 billion to $1.77 billion, or 6% to 8% growth, compared with the prior year. Earnings are anticipated to be 6% to 9% higher, or $2.68 to $2.77 a share.