Stock Monitor: Atento Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 27, 2018 / Active-Investors.com has just released a free earnings report on Global Payments Inc. (NYSE: GPN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GPN. Global Payments reported financial results on February 15, 2018, for the fourth quarter and full year ended December 31, 2017. The Company reported double-digit organic growth across all its markets in Q4 FY17. Fiscal 2017 was an outstanding year for the Company as it delivered the fastest rates of organic adjusted net revenue growth, margin enhancement, and adjusted earnings per share growth in its history. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Atento S.A. (NYSE: ATTO), which also belongs to the Services sector as the Company Global Payments. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Global Payments most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Global Payments' total revenues reached $1.05 billion for Q4 FY17, up 10.95% from $950.19 million in Q4 FY16. This can be attributed to the Company's technology-enabled distribution along with its continuing expansion of faster growth geographic markets positions. The Company's adjusted revenue was $938.96 million for Q4 FY17, which was behind analysts' estimates of $942.4 million.

Global Payments' total operating expenses were $904.68 million for FY17 compared to $869.96 million in Q4 FY16, reflecting an increase of 3.99%. The Company's operating income advanced 86.44% to $149.58 million in Q4 FY17 from $80.23 million in Q4 FY16.

Net income attributable to Global Payments was $241.96 million in Q4 FY17, which is approximately 10 times the net income of $24.10 million in Q4 FY16. Diluted earnings per share (EPS) attributable to Global Payments in Q4 FY17 were $1.51 compared to $0.16 in Q4 FY16, reflecting an increase of 843.75%. Global Payments' reported results included special items such as effect of acquisition accounting for the ACTIVE Network transaction, amortization of acquired intangibles, employee termination costs, share-based compensation expense and income tax benefit owing to the US Tax Cuts and Jobs Act of 2017. The Company's diluted EPS, after adjusting for non-recurring items, increased 22.99% to $1.70 in Q4 FY17 from $0.87 in Q4 FY16. This was higher than analysts' consensus estimates of $1.05 per share.

For the year ending December 31, 2017, Global Payments' total revenues were $3.98 billion, up 17.92% from $3.37 billion in FY16. The Company's operating income advanced 56.83% to $558.87 million y-o-y in FY17. Net income attributable to the Company in the reported year was $468.43 million, 132.18% higher than $201.75 million in the previous year. Diluted EPS rose 119.71% to $3.01 in FY17 from $1.37 in FY16. Diluted EPS for full year 2017, excluding special items was $4.01, up 25.71% from $3.19 in FY16.

Global Payments' Segment Details

The North America segment generated net revenues of $766.61 million in Q4 FY17, 8.84% up y-o-y. This segment's non-GAAP operating income was $206.22 million for the reported quarter, an increase of 17.84% from $175 million in the previous year's comparable quarter.

For Q4 FY17, the Europe segment's net revenues advanced 19.57% to $210.27 million on a y-o-y basis. This segment had a non-GAAP operating income of $83.34 million in Q4 FY17 compared to $68.28 million in Q4 FY16, reflecting an increase of 22.05%.

The Asia/Pacific segment reported net revenues of $77.38 million in Q4 FY17, an increase of 10.59% y-o-y. This segment reported a non-GAAP operating income of $26.37 million in Q4 FY17, up 25.68% from $20.98 million in Q4 FY16.

Cash Matters

Global Payments had cash and cash equivalents of $1.34 billion as on December 31, 2017, 14.48% higher than $1.16 billion as on December 31, 2016. The Company had a long-term debt of $4.56 billion at the end of FY17, an increase of 7.01% from $4.26 billion at the end of FY16.

For the twelve months ending December 31, 2017, Global Payment's net cash flow from operating activities was $512.39 million, 22.21% lower than $658.69 million for the same period last year. The Company incurred capital expenditures of $181.91 million in FY17, an increase of 30.97% from $138.89 million in FY16.

Global Payments paid dividends of $6.73 million in FY17, 13.99% higher than $5.91 million in FY16.

Outlook

For full year 2018, Global Payments expects its adjusted net revenue plus network fees to range between $3.88 billion and $3.97 billion, which implies an increase of 12% to 15% from 2017. The Company's adjusted diluted earnings per share are expected to be in the range of $4.95 to $5.15, up 23% to 28% from 2017. Global Payments expects its annual adjusted operating margin for 2018 to increase by 110 basis points from the adjusted operating margin of 30.4% in 2017.

Global Payments' Board of Directors declared a dividend of $0.01 per share payable on March 30, 2018, to shareholders of record as on March 16, 2018. The Board also increased the Company's existing share repurchase program authorization, bringing the total available authorization to $600 million.

Stock Performance Snapshot

March 26, 2018 - At Monday's closing bell, Global Payments' stock climbed 2.91%, ending the trading session at $114.41.

Volume traded for the day: 799.94 thousand shares.

Stock performance in the last three-month ? up 13.99%; previous six-month period ? up 19.40%; past twelve-month period ? up 45.89%; and year-to-date ? up 14.14%

After yesterday's close, Global Payments' market cap was at $18.63 billion.

Price to Earnings (P/E) ratio was at 57.55.

The stock has a dividend yield of 0.03%.

The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 2.7% at the end of the session.

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