Global Payments Inc. shares are up greater than four% in noon buying and selling Wednesday, after the financial-technology firm beat expectations on the underside line and elevated its share buyback program.
The firm posted a “clean” quarter, in response to Buckingham Research analyst Chris Brendler, and noticed robust showings from some of its current acquisitions. Global Payments
stated that bookings for AdvancedMD, a medical software program firm that it acquired late final yr, rose almost 50% as cross-selling advantages kicked in.
The newest earnings report comes amid heightened merger exercise within the merchant-acquiring area, and in monetary know-how extra broadly, together with Fiserv Inc.’s
$22 billion deal for First Data Corp.
that was introduced a month in the past. There has been some concern amongst analysts and buyers that this consolidation might harm stand-alone friends, however Global Payments Chief Executive Jeff Sloan advised MarketWatch that the First Data/Fiserv mixture “validates the shift we’ve made into technology distribution.”
Sloan expects the corporate to continue benefiting from several tech-focused areas, together with rising adoption of cellular funds and e-commerce options generally, in addition to a gravitation towards extra software-as-a-service and cloud-based gross sales. These areas symbolize “cross-currents with global overlay,” he stated, as Global Payments pushes additional into fast-growing worldwide markets.
He’s upbeat a few new financial-institution partnership in Mexico in addition to the corporate’s alternatives in Canada, Asia, and Latin America.
Sloan stated that know-how offerings are of eager curiosity to financial-institution companions in Europe, the place the banking panorama is extra concentrated than within the U.S., as banks attempt to use their tech to develop market share. There are extra gamers on the U.S. banking scene, nevertheless, which has restricted the methods during which banks leverage software program offerings. “That is going to change,” Sloan informed MarketWatch, as he predicts that bank-based know-how distribution will turn into extra essential within the U.S. market going ahead.
“Increasingly in the payments business, the winners and losers are separated by the tech investments they’re making and the ongoing digitization of the value chain,” he stated. “The competitive moat between us and everyone else is really evident.”
Shares have gained 12% over the previous three months, whereas the S&P 500
has risen 1%.