The market expects Global Payments (GPN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 13, 2025, might help the stock move higher if these key numb ...

Stock Performance - Shares of Global Payments Inc (GPN) have plunged 16.4% in the past year, underperforming the industry's growth of 20.5% [1] - Peers like Fiserv, Inc (FI) and Fidelity National Information Services, Inc (FIS) have gained 51.6% and 27.1%, respectively, over the same time frame [1] - The S&P 500 index has rallied 24.8% in the past year, a stark divergence from GPN's price performance [1] - The stock moved down 21.4% from its 52-week high of $141.78 and is currently trading below its 50-day moving average, signaling downward momentum [2] Challenges - Global Payments faces challenges from rising operating expenses, which inched up 1.5% year over year in the first nine months of 2024 [4] - Intensified competition in the payment market from emerging firms threatens profitability and pricing dynamics [4][5] - The Zacks Consensus Estimate for earnings per share has seen downward revisions, with the 2024 adjusted earnings estimate pegged at $11.58 per share, indicating 11.1% year-over-year growth [7] Valuation - The company is currently trading at 8.68X forward 12-month earnings, below its five-year median of 12.65X and the industry average of 24.54X, suggesting the stock is undervalued [6] Growth Drivers - Strong contributions from the Merchant Solutions and Issuer Solutions segments have been key revenue growth drivers, with year-over-year revenue increases of 8.8% and 3.9%, respectively, in the first nine months of 2024 [9] - The company aims for adjusted net revenue growth, excluding dispositions, in the mid-single-digit percentage range for 2025 and mid to high-single digits during 2026-2027 [10] - Global Payments continues to expand its capabilities and market presence through acquisitions, partnerships, and joint ventures, with strategic priorities including enhancing business scale and accessing new markets [11] Strategic Initiatives - Significant investments in technology focus on product innovation and transitioning technology platforms to cloud environments, aiming to improve platform performance and achieve cost efficiencies [12] - The company is simplifying its POS portfolio from more than 16 brands to a single cohesive platform to boost competitiveness and operational efficiency [12] - Divestment of non-core assets is expected to have an annual revenue impact of $500-600 million starting in the second half of 2024 [12] Conclusion - Global Payments is navigating near-term challenges like rising expenses and competitive pressures, but its focus on streamlining operations, divesting non-core assets, and enhancing technology capabilities positions it for growth [13] - Current shareholders should stay put and benefit from its expanding operations and strategic initiatives, while new investors should wait for a better entry point [13]

Revenue Growth - Consolidated revenues for the three and nine months ended September 30, 2024 increased to $2,601.6 million and $7,590.5 million, respectively, compared to $2,475.7 million and $7,220.6 million for the prior year, primarily due to growth in transaction volumes[122] - Merchant Solutions revenues for the three months ended September 30, 2024 increased by 6.0% to $1,997.7 million, representing 76.8% of total revenues[145] - Issuer Solutions revenues for the three months ended September 30, 2024 increased by 2.2% to $621.1 million, representing 23.9% of total revenues[145] - Consolidated revenues for the nine months ended September 30, 2024 increased by 5.1% to $7,590.5 million compared to $7,220.6 million in the prior year[153] - Merchant Solutions segment revenues increased by 8.8% to $5,802.8 million for the nine months ended September 30, 2024, driven by growth in transaction volume and cross-selling of services[154][155][156] - Issuer Solutions segment revenues increased by 3.9% to $1,837.4 million for the nine months ended September 30, 2024, primarily due to higher transaction volume[158] Operating Income and Expenses - Merchant Solutions segment operating income for the three and nine months ended September 30, 2024 increased compared to the prior year, driven by revenue growth and the acquisition of EVO business[123] - Issuer Solutions segment operating income for the three months ended September 30, 2024 decreased compared to the prior year due to slightly higher costs[123] - Consolidated operating income for the three and nine months ended September 30, 2024 included lower acquisition and integration expenses, offset by business transformation expenses and a technology asset charge[124] - Consolidated operating expenses for the three months ended September 30, 2024 increased by 10.9% to $2,126.0 million, primarily due to higher selling, general, and administrative expenses[145] - Corporate expenses for the three months ended September 30, 2024 included $56.4 million in employee termination benefits, $59.2 million in business transformation costs, and $55.8 million in technology asset charges[147] - Selling, general and administrative expenses increased to $3,282.2 million for the nine months ended September 30, 2024, primarily due to higher corporate expenses, including employee termination benefits and business transformation costs[161][162] - Consolidated operating income increased by 23.2% to $1,500.5 million for the nine months ended September 30, 2024, with operating margin improving to 19.8% from 16.9% in the prior year[163][164] - Merchant Solutions segment operating income increased by 12.1% to $1,960.5 million for the nine months ended September 30, 2024, with operating margin improving to 33.8% from 32.8% in the prior year[149][164] - Issuer Solutions segment operating income increased by 10.3% to $322.5 million for the nine months ended September 30, 2024, with operating margin improving to 17.6% from 16.5% in the prior year[149][164] Financial Performance and Metrics - The company expects its transformation initiatives to generate more than $500 million of annual run-rate operating income benefit by the first half of 2027[130] - Cost of service as a percentage of revenues decreased to 37.0% for the nine months ended September 30, 2024, compared to 38.9% in the prior year, driven by improved operating leverage and the divestiture of the consumer business[159][160] - Interest and other income increased to $126.6 million for the nine months ended September 30, 2024, including a $18.8 million gain from the release and conversion of Visa convertible preferred shares[165][166] - The effective income tax rate for the nine months ended September 30, 2024 was 13.4%, benefiting from foreign interest income, tax credits, and a change in the assessment of valuation allowances[168] - The effective income tax rate for the three months ended September 30, 2023, was 14.1%, and for the nine months ended September 30, 2023, it was 24.9%[169] - Net income attributable to Global Payments was $315.1 million for the three months and $1,003.2 million for the nine months ended September 30, 2024[171] - Diluted earnings per share was $1.24 for the three months and $3.92 for the nine months ended September 30, 2024[172] Capital and Liquidity Management - The company had cash and cash equivalents totaling $2,941.9 million as of September 30, 2024, with $888.4 million available for general purposes[178] - Capital expenditures were $490.9 million for the nine months ended September 30, 2024, with an anticipated $670.0 million for the year ending December 31, 2024[182] - The company used $900.0 million to repurchase shares of its common stock during the nine months ended September 30, 2024[186] - The remaining amount available under the share repurchase program was $1,371.9 million as of September 30, 2024, with an increase to $2.5 billion approved on October 24, 2024[187] - The company issued $2.0 billion in aggregate principal amount of 1.500% convertible unsecured senior notes due March 2031 on February 23, 2024[189] - The company entered into capped call transactions with an initial cap price of $228.90 per share to hedge the potential dilutive effect upon the conversion of the notes[192] - The cost of $256.3 million incurred in connection with the capped call transactions was reflected as a reduction to paid-in-capital in the consolidated balance sheet as of September 30, 2024[193] - The company has $1.5 billion in aggregate principal amount of 1.000% convertible notes due August 2029, issued in 2022 with interest payable semi-annually[194] - The company has a $5.75 billion unsecured revolving credit facility maturing in August 2027[195] - As of September 30, 2024, $1.5 billion was borrowed under the revolving credit facility with an interest rate of 6.56%, leaving $4.2 billion available[196] - The company has a $2.0 billion commercial paper program, with no borrowings outstanding as of September 30, 2024[197][198] - The required leverage ratio was 4.25 to 1.00 and the interest coverage ratio was 3.00 to 1.00 as of September 30, 2024, with compliance maintained[199] - As of September 30, 2024, $788.1 million was outstanding under settlement lines of credit, with additional capacity of $2,203.7 million[202] - The weighted-average interest rate on settlement lines of credit borrowings was 5.63% as of September 30, 2024[202] - The company had $75.9 million of cash on deposit used to determine available credit for settlement lines of credit as of September 30, 2024[201] - The maximum and average outstanding balances under settlement lines of credit were $996.4 million and $534.8 million, respectively, during the three months ended September 30, 2024[202] Market Risks and Disclosures - The company is exposed to market risks, with detailed disclosures available in the Annual Report on Form 10-K for the year ended December 31, 2023[209]

BOSTON, Oct. 31, 2024 (GLOBE NEWSWIRE) -- MineralTree, the business-to-business division of Global Payments (NYSE: GPN) offering accounts payable (AP) and payment automation solutions, today released its 9th annual State of AP Report. This year’s findings provide a valuable benchmark for finance teams to compare their back office automation efforts and highlight areas where they can capitalize further to support their businesses. The 2024 report reflects responses from buyers and their vendors to present a ...

Global Payments Inc. (NYSE:GPN) Q3 2024 Earnings Conference Call October 30, 2024 8:00 AM ET Company Participants Winnie Smith - Senior Vice President, Investor Relations Cameron Bready - Chief Executive Officer Josh Whipple - Chief Financial Officer Conference Call Participants Will Nance - Goldman Sachs Bryan Bergin - TD Cowen Bryan Keane - Deutsche Bank Dan Perlin - RBC Capital Markets Darrin Peller - Wolfe Research Tien-tsin Huang - J.P. Morgan Trevor Williams - Jefferies Jason Kupferberg - Bank of Amer ...

Global Payments (GPN) reported $2.36 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.6%. EPS of $3.08 for the same period compares to $2.75 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.38 billion, representing a surprise of -0.89%. The company delivered an EPS surprise of -0.96%, with the consensus EPS estimate being $3.11.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Global Payments (GPN) came out with quarterly earnings of $3.08 per share, missing the Zacks Consensus Estimate of $3.11 per share. This compares to earnings of $2.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.96%. A quarter ago, it was expected that this electronics payment processing company would post earnings of $2.91 per share when it actually produced earnings of $2.93, delivering a surprise of 0.69%. Over the l ...

| --- | --- | --- | --- | |------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | 3Q 2024 Earnings | | | | | October 30, 2024 | | | | Forward-looking statements This presentation may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we ope ...

Exhibit 99.1 Global Payments Reports Third Quarter 2024 Results October 30, 2024 • Third quarter 2024 GAAP diluted earnings per share (EPS) of $1.24, a decrease of (11)%, and adjusted EPS of $3.08, an increase of 12% • Third quarter 2024 GAAP revenue of $2.60 billion, an increase of 5%, and adjusted net revenue of $2.36 billion, an increase of 6% • Reaffirms outlook for 2024 • Reaches a definitive agreement to sell AdvancedMD • Enters into $600 million accelerated share repurchase plan ATLANTA -- Global Pay ...

Earnings and Revenue Forecast - Wall Street analysts forecast Global Payments (GPN) to report quarterly earnings of $3 11 per share, a year-over-year increase of 13 1% [1] - Revenues are anticipated to reach $2 38 billion, reflecting a 6 6% increase compared to the year-ago quarter [1] - The consensus EPS estimate for the quarter has been revised downward by 0 2% over the past 30 days [2] Key Metrics Projections - Non-GAAP Revenues for Merchant Solutions are predicted to reach $1 85 billion, a 7 1% increase year-over-year [5] - Non-GAAP Revenues for Issuer Solutions are expected to be $546 92 million, indicating a 5 2% year-over-year increase [5] - Revenues for Issuer Solutions are forecasted at $633 49 million, a 4 2% increase from the prior-year quarter [6] - Revenues for Merchant Solutions are estimated at $2 00 billion, suggesting a 6 2% year-over-year increase [6] - Geographic Revenue for Europe is projected to reach $439 74 million, a 2 9% increase from the year-ago quarter [6] - Geographic Revenue for the Americas is expected to be $2 10 billion, a 5 8% year-over-year increase [7] - Geographic Revenue for Asia Pacific is forecasted at $62 27 million, a 2 2% decrease from the year-ago quarter [7] Operating Income Projections - Non-GAAP Operating Income for Merchant Solutions is predicted to reach $915 32 million, compared to $847 68 million in the same quarter last year [8] - Non-GAAP Operating Income for Issuer Solutions is expected to be $258 79 million, compared to $246 64 million in the same quarter last year [8] - Operating Income for Merchant Solutions is forecasted at $676 07 million, compared to $637 86 million in the same quarter last year [9] - Operating Income for Issuer Solutions is estimated at $119 35 million, compared to $113 88 million in the same quarter last year [9] Stock Performance - Shares of Global Payments have shown a return of -1 9% over the past month, compared to the Zacks S&P 500 composite's +2% change [9] - With a Zacks Rank 3 (Hold), GPN is expected to mirror the overall market performance in the near future [9]