On Friday, Jan. 5, transaction processor and money-transfer firm Global Payments (NYSE:GPN) released fiscal 2007 second-quarter earnings for the period ended Nov. 30, 2006. Here are the quick-and-dirty details for the quarter.

  • Sales grew 18.7% to $260.7 million, continuing a trend of double-digit top-line gains.
  • Total diluted earnings grew 11.1%, but only met analyst projections when excluding stock option expenses, causing the stock to fall more than 18%. Analysts are accustomed to Global Payments beating expectations.
  • Free cash flow fell because of lower settlement processing inflows.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2007

Q2 2006

Change

Sales

$259,990

$260,697

$219,673

18.7%

Net Profit

--

$34,002

$30,613

11.1%

EPS

$0.44

$0.42

$0.37

13.5%

Diluted Shares

--

81,729

81,906

(0.2%)

Numbers for the three months ended Nov. 30.

Get back to basics with a look at the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

59.43%

60.44%

(1.01)

Operating Margin

20.06%

22.77%

(2.71)

Net Margin

13.04%

13.94%

(0.90)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$249,247

$131,696

89.3%

Accounts Rec.

$74,524

$62,237

19.7%

Inventory

No Data

$2,728

NM



Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$114,111

$79,857

42.9%

Long-Term Debt

$0

$0

NM



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2007

Q2 2006

Change

Cash From Ops.

$114,219

$142,939

($28,720)

Capital Expenditures

$15,259

$12,538

$2,721

Free Cash Flow

$98,960

$130,401

($31,441)
Numbers for the six months ended Nov. 30. Capex does not include business acquisitions.

Find out why Fools always follow the money.

Comparable companies:

  • First Data Corp (NYSE:FDC)
  • Western Union (NYSE:WU)
  • Moneygram (NYSE:MGI)

Related Foolishness:

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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 discuss any companies mentioned further. The Fool has an ironclad disclosure policy.