Why Global Payments Plunged Double Digits Today
Shares of payments processor company Global Payments (NYSE: GPN) were falling today, down 11% as of 2:38 p.m. ET. The large payments processing giant fell after releasing an earnings report that came generally in line with revenue estimates and beat on earnings per share. Additionally, the company left its initial 2022 guidance unchanged.
So it's a bit unclear what caused such a large drop. Perhaps, with the 10-year Treasury bond reaching the psychologically important 3% threshold and fears over an aggressive Federal Reserve tightening, the bar is set much higher for companies reporting earnings -- especially economically sensitive companies in the fintech space.
In the first quarter, Global Payments grew overall revenue 8%, with non-GAAP (adjusted) operating margins expanding by half a percentage point, and adjusted earnings per share rising 14% to $2.07 per share. The revenue figure came in line with expectations, while the profit line beat expectations.
Source Fool.com
