* Q1 adj shr from cont. ops $0.67 vs est EPS $0.69
* Q1 EPS $0.61, rev up 7 pct to $440.1 mln
* Maintains FY 2011 rev, earnings outlook * Inks Visa
sponsorship deal with Canadian firm
* Shares down 4 pct after market
(Recasts; adds conference call details, updates shares)
Oct 11 Global Payments Inc (GPN.N) reported a
quarterly profit below market view, hurt by higher expenses,
and the credit card processor said it expects second-quarter
earnings to be at around the same levels as the first quarter.
The Atlanta-based company also said the third quarter
should be seasonally weaker but that the fourth quarter would
be "quite strong."
The company said it executed a Visa sponsorship agreement
with a Canadian financial institution starting in March 2011,
but did not name the financial institution.
In June, Canadian Imperial Bank of Commerce (CM.TO)
notified Global Payments that it would not renew its Visa
sponsorship agreement with the company when it expires in March
Global Payments, which had filed with Canadian regulators
to start a loan company for directly processing Visa
transactions in the country from March 2011, said it continues
to pursue setting up its own bank in Canada.
For the first quarter ended Aug. 31, excluding items, the
company reported earnings of 67 cents a share.
Analysts on average were looking for a profit of 69 cents a
share, before items, according to Thomson Reuters I/B/E/S.
"First quarter results reflect strong growth in the U.S.
and Asia Pacific," Chief Executive Paul Garcia said in a
"Our annual expectation for overall international revenue
growth in dollars remains unchanged at low single digits, and
we expect material margin expansion in international this
year," Chief Financial Officer David Mangum said on a
International merchant services contributed about 23
percent, or about $103.3 million, to the company's total
Shares of the company, which have gained about 6 percent
since it reported fourth-quarter results in July, were down
about 4 percent at $40.50 in trading after the bell. They
closed at $42.34 Monday on the New York Stock Exchange.
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(Reporting by Brenton Cordeiro in Bangalore; Editing by