(By Balachander) Global Payments Inc. (NYSE:GPN) raised its earnings guidance for 2013 by 3 cents after the provider of electronic transaction processing services announced a $125 million accelerated share repurchase (ASR) plan.
The Atlanta, Georgia-based company said it now expects 2013 earnings per share (EPS) on a cash basis between $3.64 and $3.71, or growth of 3 percent to 5 percent over fiscal 2012.
Wall Street analysts, on average, expect GPN to earn $3.69 per share for the 12 months ending May 2013.
On a constant currency basis, Global Payments expects EPS on a cash basis to increase 5 percent to 7 percent.
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The company continues to forecast annual revenue growth of 7 percent to 9 percent at $2.36 billion to $2.4 billion, while analysts project a growth of 8.80 percent.
Global Payments announced an ASR agreement with Bank of America to buyback a total of $125 million of its shares, as part of its program to repurchase up to $300 million of stock.
The company expects to complete all repurchases under the ASR no later than May 31, 2013.
GPN shares closed Wednesday's regular trading at $49.51. Over the past year, the stock has been trading between $39.37 and $53.93.