Shares of Global Payments Inc. were up 2.9% in premarket trading Monday after the financial technology company beat profit expectations for its latest quarter while also announcing a partnership with Alphabet Inc.’s Google.
Global Payments GPN,
Revenue for the fourth quarter fell to $1.93 billion from $1.99 billion, while analysts were modeling $1.90 billion.
Global Payments said in a release that it expects annual run-rate revenue synergies from its TSYS merger to reach at least $150 million by September 2022, up from a prior estimate of $125 million. The company also anticipates annual run-rate expense synergies of at least $400 million by September 2022, above a prior estimate that called for $375 million.
The company issued a full-year forecast calling for $7.5 billion to $7.6 billion in adjusted net revenue and $7.75 a share to $8.05 a share in adjusted earnings. Analysts tracked by FactSet were modeling $7.58 billion in adjusted revenue and $8.00 a share in adjusted earnings.
Global Payments announced that its board of directors approved an increase to the company’s buyback authorization, bringing the total amount available to $1.5 billion. Through the program, the company plans to conduct an accelerated share-repurchase program of $500 million “in the coming days.”
The company also announced a strategic partnership with Alphabet’s GOOGL,
The move to Google Cloud is expected to drive cost savings over time, Global Payments President Cameron Bready said on the company’s earnings call. The companies will also take on “joint go-to-market efforts” through cross-selling.
Global Payments shares have gained 14% over the past three months as the S&P 500 SPX,
