Global Payments reports earnings, names Sloan CEO
(Associated Press Via Acquire Media NewsEdge) ATLANTA (AP) — Global Payments Inc. on Tuesday named a new CEO, sped up share repurchase plans and increased its outlook, which sent its stock up in after-hours trading.
The Atlanta company, which also reported a big jump in quarterly earnings, provides electronic transaction processing services for retailers, financial institutions, government agencies and others.
Global Payments said that Jeffrey S. Sloan, who joined the company in 2010 and serves as its president, has been named as its chief executive. He succeeds Paul Garcia, who has served as CEO since 1999 and will stay on as the company's chairman.
The company also said that it plans into enter into an accelerated share purchase plan this month, under which it will buy back up to $100 million of the company's common stock. This is part of the company's existing $250 million share repurchase authorization.
As a result of this plan, the company lifted its per-share forecasts for the year by a nickel. It expects to earn $3.98 to $4.05 per share for 2014 on an adjusted basis. Analysts polled by FactSet were forecasting $3.97 per share.
Global Payments made the announcements as it reported a nearly 39 percent jump in its fiscal first-quarter profit.
The company reported after the market closed that it earned $64.6 million, or 87 cents per share, for the quarter that ended Aug. 31. That's compared with $46.7 million, or 59 cents per share, in its first quarter last year. Revenue jumped to $629.7 million from $590.3 million.
Analysts were anticipating earnings of 95 cents per share on revenue of $624.1 million.
Shares of Global Payments increased $3.27, or more than 6 percent, to $53.97 in after-hours trading. Its stock fell 39 cents to close regular trading at $50.69 amid a broader market uptick.
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