On February 13, Global Payments, a payment technology company, announced an increase in fourth-quarter profit due to heightened customer spending during the holiday season.
The robust labor market, characterized by decreased layoffs and significant wage growth, has driven consumer expenditure across a wide array of products and services.
Earnings of payment technology firms are closely tied to consumer spending patterns, offering valuable insights into the financial well-being of U.S. consumers.
Last month, Visa, the largest global payments processor, surpassed analysts' forecasts for first-quarter profit, reflecting increased customer spending on areas such as travel and dining over the holiday period.
Global Payments has been optimizing its operations and shedding non-core assets to focus on being a key player in a fiercely competitive market.
In October, Global Payments sold its medical software company, AdvancedMD, to Francisco Partners as part of its strategic realignment.
CEO Cameron Bready described 2024 as a transformative year for Global Payments, marking the launch of their comprehensive transformation agenda to shape the future of the business.
In the fourth quarter, revenue grew by 3.4% to $2.52 billion, with the merchant solutions segment recording a 3.6% increase in revenue from the previous year.
Adjusted net profit attributable to the company surged to $742.3 million, or $2.95 per share, for the three months ending December 31, up from $692.2 million, or $2.65 per share, a year ago.
Global Payments anticipates a 10% to 11% growth in adjusted EPS for 2025, with adjusted net revenue expected to increase by 5% to 6%.