Global payments beats Q2 profit estimates on spending resilience

BUSINESS: Payments company Global Payments beat profit estimates for the second quarter on Wednesday, as consumer spending remains resilient despite economic slowdown concerns.

Why it matters
While recent economic data has fueled recession fears, US consumers remain resilient in the face of higher long-term interest rates. The payments sector has maintained steady growth in transaction volumes this year, even as some industry players have expressed concern about rising pressure on lower-income groups. Last month, industry leader Visa reported revenue growth that was lower than estimates.

Context
Global Payments is a provider of payments technology and software solutions, processing transactions made via credit cards, debit cards and digital payment methods. The company offers an end-to-end global commerce platform in more than 100 countries.

According to the data
On an adjusted basis, the Atlanta-based company earned $2.93 per share in the three months ended June 30, higher than analysts’ average estimate of $2.90. The company reported total revenue of $2.57 billion in the second quarter, compared with $2.45 billion in the year-ago quarter.
Market reaction
The company’s shares jumped 7.6 percent in premarket trading.