Global Payments' Worldpay bet faces Q2 earnings test

Global Payments Inc. reports second-quarter results Wednesday, with investors seeking proof that its Worldpay acquisition is delivering on integration promises, as the company forecasts adjusted earnings of $3.46 per share on revenue of $3.16 billion. The revenue surge of 61.2% year-over-year reflects Worldpay consolidation, while earnings are expected to rise 11.6%, with sequential improvement of 17% from the first quarter. Analysts rate the stock a buy with a $94.19 price target, though EPS estimates have declined 1.8% over two months amid execution concerns. The company reaffirmed full-year guidance of 5% constant-currency revenue growth and adjusted earnings of $13.80 to $14.00, while Morgan Stanley upgraded the stock in late July, citing improved competitive positioning and buyback capacity. Global Payments has beaten earnings expectations for four consecutive quarters, with shares up 17% over the past month.