On Friday, March 30, payment processor and money transfer firm Global Payments
- Total revenue advanced 15.7%, as core merchant service revenue (88% of total revenue) grew 16.8% and the money-transfer business improved 7.9%.
- Excluding $0.02 in stock-option expenses, diluted earnings improved 16.7% and grew 22%, according to the company.
- Management expects 2007 revenue around $1.05 billion and diluted earnings of $1.74-$1.76, including stock-option expenses.
- Global Payments carries a coveted five-star rating in the Motley Fool CAPS intelligence database. On the merchant service side, rival and ultimate Rule Maker First Data
(NYSE:FDC) carries a four-star rating, while money-transfer peer Western Union(NYSE:WU) also has a five-star rating.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$264,130 |
$260,418 |
$225,159 |
15.7% |
|
Net Profit |
-- |
$34,296 |
$30,111 |
13.9% |
|
EPS |
$0.41 |
$0.42 |
$0.36 |
16.7% |
|
Diluted Shares |
81,972 |
82,771 |
(1.0%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
60.24% |
60.53% |
(0.29) |
|
Operating Margin |
19.66% |
21.38% |
(1.72) |
|
Net Margin |
13.17% |
13.37% |
(0.20) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$292,059 |
$213,143 |
37.0% |
|
Accounts Rec. |
$70,404 |
$59,892 |
17.6% |
|
Inventory |
No Data |
$2,710 |
N/A |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$111,257 |
$85,312 |
30.4% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$163,928 |
$228,059 |
(28.1%) |
|
Capital Expenditures |
$23,234 |
$17,835 |
30.3% |
|
Free Cash Flow |
$140,694 |
$210,224 |
(33.1%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- So Which Stocks Should I Buy Now?
- Insufficient Funds From Global Payments
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First Data and Western Union are Inside Value recommendations. Try out a 30-day trial subscription to see whether bargain hunting is right for you.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann is long shares of Western Union and First Data but has no financial interest in any other company mentioned. Feel free to email him with feedback or to further discuss any companies mentioned. The Fool has an ironclad disclosure policy.
