Strong results is driving Global Payments Inc(NYSE:GPN) stock higher today

Global Payments Inc (NYSE: GPN) in the second quarter of 2017 has reported the adjusted earnings per share growth of 17% to 89 cents beating the analysts’ estimates for earnings per share of 84 cents. GPN has posted 58% growth in the revenue of $817.2 million in the 2Q 2017, beating the analysts’ estimates of $803.4 million. Asa result, GPN stock rallied over 7.1% on January 9th, 2017 (as of 11:25 AM EST; Source: Google finance).

GPN in the second quarter posted the double-digit organic growth across the key markets, including in the U.S. direct business and across most of Europe and Asia Pacific. In addition, the technology enabled businesses to continue to accelerate the growth, particularly the strong performance from the integrated payments businesses, OpenEdge and Ezidebit, and from the software-led solutions at Heartland Commerce and Campus Solutions. The company is also making significant progress in integrating Heartland.

For CY 2017, Global Payments is expecting the reported adjusted net revenue in the range of $3.35 to $3.45 billion, which represents the estimated growth of 18% to 21% over the CY 2016 estimate, or 20% to 24% on a constant currency basis. Further, Global Payments is expecting the reported adjusted earnings per share in the range of $3.70 to $3.90 that represents the estimated growth of 16% to 23% over the CY 2016 estimate, or 21% to 27% on a constant currency basis. CY 2017 adjusted earnings per share anticipation depicts the annualized growth of approximately 17% relative to the company’s last FY 2017 guidance, or about 20% on a constant currency basis as GPN has raised the guidance.

Additionally, Global Payments has raised the expectation for expense synergies from the Heartland merger to $135 million, which is a $10 million increase from the prior target.

GPN’s management has approved a quarterly dividend of $0.01 per share payable February 24th, 2017 to shareholders of record as of February 10th, 2017. Global Payments has raised the total available authorization to $300 million as the company has also approved an increase to the existing authorization for the company’s share repurchase program.

Meanwhile, Global Payments stock has risen 32.55% in the last one year (source: Google Finance) while rallied over 14.9% in this year alone.

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