(Reuters) – Payment technology company Global Payments reported a rise in fourth-quarter profit on Thursday, as customers ramped up spending during the holiday season.
WHY IT’S IMPORTANT
A strong labor market, marked by low layoffs and strong wage growth, has fueled consumer spending on range of goods and services.
Payment technology companies’ earnings are linked to consumer spending levels, and often offer insight on the financial health of U.S. consumers.
Last month, Visa, the world’s largest payments processor, posted first-quarter profit that sailed past analysts’ estimates, as customers splurged on everything from travel to dining out during the holiday season.
CONTEXT
Global Payments, has been streamlining its operations and divesting from non-core assets as it looks to focus as a pure-player in an intensely competitive space.
Last October, Global Payments sold its medical software company AdvancedMD to Francisco Partners.
KEY QUOTES
“2024 was a pivotal year for Global Payments as we launched our broad transformation agenda to set the future course for our business” said CEO Cameron Bready.
BY THE NUMBERS
For the fourth-quarter, revenue grew 3.4% to $2.52 billion. Merchant solutions, Global Payments’ biggest segment, saw revenue rise 3.6% higher than a year earlier.
On an adjusted basis, net profit attributable to the company rose to $742.3 million, or $2.95 per share, in the three months ended December 31, compared with $692.2 million, or $2.65 per share, a year earlier.
Global Payments forecast its 2025 adjusted EPS growth to be in a range of 10% to 11%, while the company expects adjusted net revenue growth between 5% to 6%.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Tasim Zahid)
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