(Reuters) - Global Payments (NYSE:GPN) forecast full-year revenue on Wednesday that was largely below analysts' estimates as the payments technology firm gears up for a drop in consumer spending, sending the company's shares down about 3% before the bell.
The outlook adjusts to "a slightly more tempered economic environment given continued uncertainty," Global Payments CFO Josh Whipple said.
The Atlanta-based company forecast adjusted net revenue between $9.17 billion and $9.30 billion in 2024, the midpoint of which was below analysts' estimates of $9.29 billion, according to LSEG data.
While a hot labor market and healthy finances have allayed fears of a recession, consumers have scaled back spending on travel and discretionary goods amid elevated levels of inflation and interest rates.
Fees for companies such as Global Payments are strongly correlated to spending volumes.
Last month, the world's largest payments processor Visa (NYSE:V) also forecast tepid revenue growth marred by worries that a slowing economy and high interest rates will continue to pressure the wallets of consumers, particularly those in the lower-income bracket.