Global Payments Q4: Earnings Beat, Margins Expand, Modest Outlook & More
Portfolio Pulse from Nabaparna Bhattacharya
Global Payments Inc. (NYSE:GPN) reported Q4 adjusted earnings per share of $2.65, surpassing the consensus estimate of $2.64, and adjusted revenues of $2.186 billion, slightly above the $2.182 billion estimate. The company saw an 8% increase in adjusted net revenues and a 30 basis point expansion in adjusted operating margin to 44.8%. Adjusted Merchant Solutions revenues grew by 18.5%, and Issuer Solutions by 5.8%. The company's long-term debt stood at $15.69 billion, with cash and equivalents at $2.2 billion. A dividend of $0.25 per share was announced, along with a share repurchase authorization increase to $2 billion. For 2024, Global Payments expects adjusted net revenue between $9.17 billion and $9.30 billion, with adjusted EPS of $11.54 to $11.70, slightly below the $11.74 estimate. GPN shares dropped 0.32% to $135.63.

February 14, 2024 | 4:06 pm
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Global Payments Inc. reported higher-than-expected Q4 earnings and revenue, announced a dividend, and increased its share repurchase authorization. However, its 2024 outlook is modest with a slight miss on EPS estimates.
Despite the positive earnings and revenue beat for Q4, the modest outlook for 2024, especially the slight miss on the EPS estimates, could lead to short-term negative sentiment among investors. The immediate price action, a 0.32% drop, reflects this cautious outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100