Oppenheimer Maintains Perform Rating for Global Payments; Slowdown and Sluggish Revenue Trends to Blame

Amid the slowdown in Europe revenue growth, continued sluggish revenue/margin trends in Canada and the decided 4Q EPS skew during FY11, Oppenheimer has reaffirmed its Perform rating of Global Payments, Inc. GPN. “2Q:FY11 guidance is ~$0.05 below our estimate; that said, management maintained its FY11 guidance of 6-8% revenue growth (vs. +7% in 1Q:10) and 6-9% EPS growth to $2.68-$2.77 (vs. implied $1.34 in 1H:11),” Oppenheimer writes. “Our FY11 estimate is adjusted to $2.67 (from $2.68) while our FY12 estimate is unchanged at $3.00.” Global Payments, Inc. currently trades for $42.34.