Global Payments Soars

A little over a year ago, I offered some scattered thoughts about Global Payments (GPN):

I’ve been watching Global Payments ($GPN) lately. The stock was crushed earlier this year due to an embarrassing security breach. You’ll notice that many good bargains often have dents and scratches in them, but the question is how damaging are they. GPN still looks like a strong business. They report earnings tomorrow. The stock should probably be about $10 higher but I understand the market’s reticence. I’m not saying it’s a clear buy but it’s one to watch.

When I wrote that, GPN was at $43 per share. The stock is up 11% today to $56.21.

The catalyst for today’s rally is that GPN said it will earn at least $4.05 per share next year, which is a big increase over the earlier guidance. They also made $1 per share last quarter which beat estimates by six cents.

I’m glad to see GPN rally but I think the shares are about fairly priced now.

Posted by Eddy Elfenbein on October 2nd, 2013 at 12:25 pm

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