Global Payments cuts annual forecasts as Middle East conflict hits travel spending

Aug. 5 (Reuters) - Payment technology company Global Payments GPN.N cut its annual net revenue and profit forecasts on Wednesday amid economic uncertainty linked to the war in the Middle East.

Shares of the company, which are up 14% so far this year, fell about 2.7% in premarket trading following results.

Here are some more details:

• Payment processors such as Global Payments are feeling the squeeze as the conflict in the Middle East disrupts global travel, reducing travel-related spending and cross-border transactions.
• Consumer spending levels directly affect the earnings of payment technology companies.
• The company provides technology, software and other services that allow its customers to accept card, check and digital payments.
• The company now expects normalized constant currency adjusted net revenue growth of about 4% to 5% and adjusted earnings per share between $13.60 and $13.80 for full year 2026.
• It previously forecast adjusted net revenue growth of approximately 5% and adjusted profit between $13.80 and $14 per share.
• Quarterly net profit attributable to the company, however, rose to $934.31 million, or $3.46 per share, on an adjusted basis in the three months ended June 30, compared with $754.19 million, or $3.10 per share, a year earlier.