(Reuters) -Payment technology company Global Payments reported a rise in third-quarter profit on Tuesday, helped by a robust performance in its merchant solutions business.
Shares of the Atlanta-based company, which have lost nearly 31.2% this year, rose 7.9% to $83.2 in premarket trading.
Consumer spending has been robust in the U.S. despite President Donald Trump’s trade and immigration policies, which have stoked worries about emerging strains in the labor market and persistent inflation.
Consumer spending levels in an economy directly affect the earnings of payment technology companies.
Visa and Mastercard’s quarterly profit last month sailed past analysts’ estimates, as strong consumer spending drove card transaction volumes.
Global Payments’ third-quarter adjusted net revenue rose 3% to $2.43 billion from a year ago.
The company’s merchant solutions, its biggest segment, posted a 6% jump in its operating income to $750 million.
“Our Merchant business is exhibiting ongoing momentum with adjusted net revenue growth accelerating to 6% constant currency excluding dispositions,” said CEO Cameron Bready.
Quarterly net profit attributable to the company rose to $783 million, or $3.26 per share, on an adjusted basis in the three months ended September 30, compared with $743.5 million, or $2.92 per share, a year earlier.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shreya Biswas)
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