Global Payments (NYSE: GPN) is a high-volume payments processor of electronic transactions and related money transfers. It performs point-of-sale credit card, debit card, and check authorization functions for merchants and financial institutions and offers corporate and government clients benefits transfer processing and electronic tax payment services. The firm also facilitates money transfers from the US and Europe, primarily targeting immigrants who send funds to their home countries. MasterCard (NYSE: MA) is a client. Western Union (NYSE: WU) is a competitor.

The firm had good news for investors late last month, when it announced fiscal Q3 EPS of 44 cents and revenues of $310.6 million. Wall Street has been expecting 42 cents and $300.9 million. In discussing the solid results, the CEO pointed to successful merchant services operations and strong revenue growth from an Asia-Pacific joint venture with HSBC Holdings (NYSE: HBC). Management also guided FY08 EPS to $1.95-$1.97 ($1.94 consensus) and FY08 revenues to $1.25-$1.26 billion ($1.24B consensus).

If you use a credit card, the chances are pretty fair that you have done some business with an Atlanta outfit that facilitates electronic transactions around the world.

Global Payments (NYSE: GPN) is a high-volume payments processor of electronic transactions and related money transfers. It performs point-of-sale credit card, debit card and check authorization functions for merchants and financial institutions and offers corporate and government clients benefit transfer processing and electronic tax payment services. The firm also facilitates money transfers from the US and Europe, primarily targeting immigrants who send funds to their home countries. MasterCard (NYSE: MA) is a client. Western Union (NYSE: WU) is a competitor.

The firm had good news for investors last week, when it announced fiscal Q1 EPS of 54 cents and revenues of $311 million. Wall Street has been expecting 50 cents and $294.6 million. The company attributed the successful quarter to a solid increase in merchant service revenues, continued organic expansion and favorable results from an Asia-Pacific joint venture with HSBC. Management also guided FY08 EPS to $1.87-1.96 ($1.91 consensus) and FY08 revenues to $1.20-$1.25 billion ($1.19B consensus). Barrington Research subsequently reiterated its "outperform" on the shares.

U.S. stocks were lower on an increase in December new job creation and higher wages. Interest rates rose. The Dow was down 0.62%, NASDAQ 100 down 0.76%, S&P 500 down 0.58%, and the 10-year bond rate rose to 4.646%. Volatility Index S&P 500 Options-VIX rose .56 to 12.07.

• Global Payments Inc.'s (NYSE: GPN) implied volatility increases: Global sells off on tighter guidance. Global Payments is recently down $8.15 to $40.90 after the company lowered its 2007 revenue guidance. Goldman Sachs said, "we believe key questions remain: 1) Is Western Union exerting significant pressure in the Mexico money transfer market, and when (in the November quarter, or in the current February quarter) did the pricing environment begin to deteriorate? How significant are the pricing changes?" Global Payments' call option volume of 5,689 contracts compares to put volume of 1,723 contracts. February option implied volatility of 35 is above its 26-week average of 29, according to Track Data, suggesting larger price risks.

MOST NOTEWORTHY: Global Payments Inc. (GPN) and Medicis Pharmaceutical Corporation (MRX) top today's modest list of upgrades. J.P. Morgan upgraded Global Payments to Overweight from Neutral citing concerns over margins being overdone and the possibility guidance could be conservative. Medicis Pharma was upgraded by Credit Suisse to Outperform from Underperform based on increased expectations for Solodyn and increased confidence in Restylane growth.

OTHER UPGRADES: Red Hat Inc. (RHAT) was upgraded to Buy from Hold at Rochdale. And finally, the Banc of America upgraded Agrium (AGU) to Neutral from Sell, citing improved margins and volumes in nitrogen for the change.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).