On Wednesday, payment company Global Payments (NYSE: GPN) beat profit estimates for the second quarter, as consumer spending remains resilient despite worries about an economic slowdown.
WHY IT’S IMPORTANT
Despite recent economic data fueling recession fears, American consumers have remained resilient in the face of higher-for-longer interest rates.
The payments sector has maintained steady growth in transaction volumes this year, even as some industry players have expressed concerns about increasing pressure on lower-income brackets.
Last month, industry leader Visa (NYSE: V) reported revenue growth that fell short of estimates.
CONTEXT
Global Payments (NYSE: GPN) is a payment technology and software solutions provider, processing transactions made through credit cards, debit cards, and digital payment methods.
The company provides an end-to-end global commerce platform in more than 100 countries.
BY THE NUMBERS
On an adjusted basis, the Atlanta-based company earned $2.93 per share in the three months ended June 30, beating analysts’ average estimate of $2.90.
The company reported a total revenue of $2.57 billion for the second quarter, compared to $2.45 billion from a year ago quarter.
MARKET REACTION
Shares of the company jumped 7.6% in premarket trading.
(Source: Reuters)
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.
