Core Insights - The international operations of Global Payments (GPN) are crucial for assessing its financial resilience and growth prospects, especially in a tightly interconnected global economy [1][2][3] Revenue Performance - GPN's total revenue for the quarter was $2.2 billion, reflecting a 1% year-over-year increase [4] - Europe generated $398.85 million, accounting for 18.09% of total revenue, slightly below the consensus estimate of $399.04 million [5] - Asia Pacific contributed $64.46 million, or 2.92% of total revenue, exceeding expectations by 7.27% [6] Future Revenue Forecasts - Analysts predict GPN will report total revenue of $2.35 billion for the current fiscal quarter, a 1.1% increase from the previous year, with Europe expected to contribute 18.6% and Asia Pacific 2.7% [7] - For the full year, total revenue is anticipated to reach $9.29 billion, a 1.5% increase, with Europe and Asia Pacific expected to contribute 18.7% and 2.8% respectively [8] Strategic Considerations - GPN's reliance on international markets presents both opportunities and challenges, making it essential to monitor international revenue trends for future projections [9][10]

Financial Performance - Consolidated revenues for the three months ended March 31, 2025, were $2,412.1 million, essentially flat compared to $2,420.2 million in the same period of 2024, reflecting a decrease of $8.1 million or 0.3%[95][113] - Merchant Solutions segment revenues decreased by $25.4 million, or 1.4%, to $1,808.7 million, impacted by approximately $20 million unfavorable foreign currency exchange fluctuations[95][113] - Issuer Solutions segment revenues increased by $18.0 million, or 3.0%, to $620.7 million, primarily due to a $23.8 million increase in transaction volume driven by cardholder activity[95][115] - Consolidated operating income for the three months ended March 31, 2025, was $470.9 million, representing an increase of $18.6 million or 4.1% from $452.3 million in the prior year[95][112] - Consolidated operating income increased to $470.9 million, with an operating margin of 19.5%[124] - Net income attributable to Global Payments was $305.7 million, compared to $313.3 million in the prior year[130] - Diluted earnings per share increased to $1.24, reflecting a decrease in diluted weighted-average shares outstanding to 247.2 million[131] Cost and Expenses - Cost of service for the three months ended March 31, 2025, decreased by $1.2 million, or 0.1%, to $921.2 million, with a cost of service percentage of 38.2%[95][116] - Corporate expenses included costs of $66.3 million associated with the business transformation initiative during the three months ended March 31, 2025[112] - Merchant Solutions segment cost of service decreased by $10.2 million, or 2.0%, to $488.9 million, with cost of service as a percentage of segment revenues decreasing to 27.0%[117] - Issuer Solutions segment cost of service increased by $10.6 million, or 2.4%, to $444.8 million, while cost of service as a percentage of segment revenues decreased to 71.7%[118] - Selling, general and administrative expenses decreased by $21.5 million, or 2.1%, to $1,024.0 million, with expenses as a percentage of revenues at 42.5%[120] - Merchant Solutions segment selling, general and administrative expenses decreased by $48.9 million, or 6.5%, to $705.7 million, with expenses as a percentage of segment revenues at 39.0%[121] Cash Flow and Investments - Cash flows from operating activities increased by 5% to $555.1 million, despite a decrease in net income[138] - Cash used for investing activities increased to $173.1 million, with $49.9 million allocated for acquisitions and $127.6 million for capital expenditures[139] - As of March 31, 2025, cash and cash equivalents totaled $2,896.0 million, with $816.9 million available for general purposes[136] Shareholder Returns - The company repurchased $446.3 million worth of common stock, retiring 4,218,350 shares at an average price of $102.07 per share during the three months ended March 31, 2025[143] - The company paid dividends of $61.1 million to common shareholders during the three months ended March 31, 2025, compared to $63.6 million in the same period of 2024[144] - The company declared a dividend of $0.25 per share payable on June 27, 2025, to common shareholders of record as of June 13, 2025[144] Debt and Financing - As of March 31, 2025, the company had $10.2 billion in aggregate principal amount of senior unsecured notes outstanding, maturing between March 2026 and August 2052[145] - The company issued $2.0 billion in 1.500% convertible notes due March 2031, with net proceeds of approximately $1.97 billion after debt issuance costs[146] - The company has a $5.75 billion revolving credit facility, with $1.5 billion outstanding and total available commitments of $3.3 billion as of March 31, 2025[150] - The company had net borrowings of $868.8 million under its commercial paper program, with a weighted average annual interest rate of 5.0%[153] - The company obtained $7.7 billion in committed bridge financing in connection with the acquisition of Worldpay announced on April 17, 2025[157] - The company has $728.0 million outstanding under specialized settlement lines of credit, with additional capacity to fund settlement of $1,981.0 million[156] - The required leverage ratio was 4.00 to 1.00 as of March 31, 2025, stepping down to 3.75 to 1.00 by June 30, 2025[154] Strategic Initiatives - The company expects transformation initiatives to generate more than $600 million of annual run-rate operating income benefit by the first half of 2027[98] - The sale of AdvancedMD was completed in December 2024 for approximately $1 billion, with potential additional contingent payments of up to $125 million[94] - Total estimated consideration for the divestiture of the Issuer Solutions business is approximately $7.5 billion in net cash and a 45% ownership interest in Worldpay[99] - The company continues to assess its business portfolio for potential asset dispositions to streamline operations and create shareholder value[97]

Core Insights - Global Payments reported revenue of $2.2 billion for the quarter ended March 2025, reflecting a 1% increase year-over-year and matching the Zacks Consensus Estimate, with an EPS of $2.82, up from $2.59 in the previous year [1] - The company achieved an EPS surprise of +4.83%, exceeding the consensus estimate of $2.69 [1] Revenue Performance - Non-GAAP Revenues from Merchant Solutions reached $1.69 billion, slightly above the $1.68 billion estimate, marking a +0.5% year-over-year change [4] - Non-GAAP Revenues from Issuer Solutions were reported at $528.82 million, surpassing the $528.21 million estimate, with a +2.6% change compared to the previous year [4] - Revenues from Issuer Solutions totaled $620.73 million, exceeding the $607.50 million estimate, representing a +3% year-over-year increase [4] - Revenues from Merchant Solutions were $1.81 billion, slightly below the $1.82 billion estimate, indicating a -1.4% year-over-year change [4] Operating Income Analysis - Non-GAAP Operating Income for Merchant Solutions was $808.95 million, above the $802.11 million estimate [4] - Non-GAAP Operating Income for Issuer Solutions was $244.94 million, slightly below the $246.04 million estimate [4] - Operating Income for Merchant Solutions was reported at $614.10 million, exceeding the $599.26 million estimate [4] - Operating Income for Corporate was -$256.53 million, worse than the -$215.98 million estimate [4]

Group 1 - Global Payments reported quarterly earnings of $2.82 per share, exceeding the Zacks Consensus Estimate of $2.69 per share, and up from $2.59 per share a year ago, representing an earnings surprise of 4.83% [1] - The company posted revenues of $2.2 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.25%, and compared to year-ago revenues of $2.18 billion [2] - Over the last four quarters, Global Payments has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 29.3% since the beginning of the year, compared to the S&P 500's decline of 3.9% [3] - The current consensus EPS estimate for the coming quarter is $3.05 on revenues of $2.35 billion, and for the current fiscal year, it is $12.20 on revenues of $9.29 billion [7] - The Financial Transaction Services industry, to which Global Payments belongs, is currently in the top 35% of Zacks industries, indicating a favorable outlook [8]

Global Payments (GPN) Q1 2025 Earnings Call May 06, 2025 07:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to Global Payments First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will open the lines for questions and answers. And as a reminder, today's conference will be recorded. At this time, I'd like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. Pl ...

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.2 billion, reflecting constant currency growth of over 5% excluding dispositions [38] - Adjusted operating margin increased by 70 basis points, resulting in an adjusted earnings per share of $2.69, an 11% increase on a constant currency basis [39][40] - The company expects adjusted net revenue growth of 5% to 6% over 2024, with adjusted operating margin expansion of approximately 50 basis points for 2025 [45][47] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1.69 billion, reflecting 6% growth on a constant currency basis, driven by high single-digit growth in POS and software and integrated embedded businesses [40][41] - Issuer Solutions reported adjusted revenues of $529 million, a 3% increase on a constant currency basis, with an adjusted operating margin of 46.3% [42][43] Market Data and Key Metrics Changes - The company noted that the disposition of AdvancedMD and exit from certain non-core markets in Asia Pacific had a 3-point impact on overall growth, while unfavorable foreign currency exchange rates were over a 1-point headwind for the quarter [39] - The company is well diversified across geographic and vertical markets, positioning it to navigate through current economic uncertainties [39] Company Strategy and Development Direction - The company is focused on a transformation agenda that includes simplifying and streamlining its business, enhancing its global scale, and concentrating investments exclusively on merchant solutions [11][12] - The acquisition of Worldpay is expected to enhance the company's capabilities and market position, creating a complete Commerce Solutions platform [12][14] - The company aims to achieve at least $600 million in cost synergies and $200 million in revenue synergies from the Worldpay acquisition [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable mid to high single-digit adjusted net revenue growth and consistent adjusted operating margin expansion in the coming years [31][32] - The company is closely monitoring ongoing tariff negotiations and their potential impact on the global economy but remains optimistic due to its diversified business model [39] Other Important Information - The company plans to maintain capital spending at 7% to 8% of adjusted net revenue, translating to over $1 billion annually focused on Merchant Solutions post-transaction [36] - The company executed share repurchases of approximately $450 million in the quarter, maintaining a healthy balance sheet with $3.8 billion in available liquidity [45] Q&A Session Summary Question: Can you talk about the rollout plan for the Genius product? - Management indicated that the initial rollout will focus on front book opportunities, with pathways for back book clients to transition at their own pace, emphasizing the excitement around the new capabilities [56][58][62] Question: Has the improved revenue growth at Worldpay been all organic? - Management confirmed that Worldpay's growth has been purely organic, driven by significant investments in their e-commerce and enterprise business [67][68] Question: What are the share buyback assumptions for 2026 and 2027? - Management expects to return over $2 billion in share repurchases in 2026 and over $3 billion in 2027, with a solid mid-single-digit EPS growth rate anticipated post-closing [70][71]

1Q 2025 earnings May 6, 2025 +5% Adjusted net revenue growth1 +70 bps 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 operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and a ...

Core Viewpoint - Global Payments (GPN) is expected to report quarterly earnings of $2.68 per share, reflecting a 3.5% increase year-over-year, with revenues projected at $2.2 billion, a 0.7% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.2%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Non-GAAP Revenues - Merchant Solutions' at $1.68 billion, a year-over-year change of +0.1% [5]. - 'Non-GAAP Revenues - Issuer Solutions' is projected to reach $528.21 million, indicating a +2.4% change year-over-year [5]. - The average estimate for 'Revenues - Issuer Solutions' is $607.50 million, suggesting a +0.8% change year-over-year [5]. Geographic Revenue Insights - 'Revenues - Merchant Solutions' is estimated at $1.82 billion, reflecting a -0.5% change year-over-year [6]. - 'Geographic Revenue - Europe' is forecasted to be $399.04 million, indicating a +3.7% change year-over-year [6]. - 'Geographic Revenue - Americas' is expected to reach $1.95 billion, showing a -1.4% change from the prior year [6]. - 'Geographic Revenue - Asia Pacific' is projected at $60.09 million, indicating a -0.4% change year-over-year [7]. Operating Income Estimates - The consensus for 'Non-GAAP Operating Income - Merchant Solutions' stands at $802.11 million, compared to $790.41 million reported in the same quarter last year [7]. - 'Non-GAAP Operating Income - Issuer Solutions' is estimated at $246.04 million, up from $241.40 million in the previous year [8]. - 'Operating Income - Merchant Solutions' is expected to be $599.26 million, compared to $580.44 million reported last year [8]. - 'Operating Income - Issuer Solutions' is projected at $109.78 million, compared to $106.10 million in the same quarter last year [9]. Stock Performance - Shares of Global Payments have declined by -23.4% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [9].

Core Viewpoint - The market anticipates Global Payments (GPN) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $2.68 per share, reflecting a year-over-year increase of 3.5%, while revenues are projected to be $2.2 billion, up 0.7% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.95%, indicating a reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.11%, which indicates a bearish sentiment among analysts [10][11]. Historical Performance - In the last reported quarter, Global Payments was expected to earn $2.96 per share but delivered $2.95, resulting in a surprise of -0.34%. Over the past four quarters, the company has beaten consensus EPS estimates twice [12][13]. Investment Considerations - Despite the negative Earnings ESP and a Zacks Rank of 3, which complicates predictions for an earnings beat, investors are advised to consider other factors influencing stock performance ahead of the earnings release [11][16].

Market Overview - Wall Street experienced a rebound in risk appetite ahead of the Easter weekend, driven by positive signals from President Trump regarding trade negotiations with the EU and China [1] - The S&P 500 rose by 0.9%, while the Nasdaq 100 increased by 0.5%, recovering from a previous 3% decline [2] - The Dow Jones fell by 0.9%, primarily due to a significant 23% drop in UnitedHealth Group Inc. after the company reduced its full-year earnings forecast [2] Sector Performance - Energy stocks led the gains for the day, supported by rising oil prices, with Exxon Mobil Corp. increasing by 4.1% and Chevron Corp. advancing by 3.5% [2] - The SPDR S&P 500 ETF Trust rose by 0.8% to $530.09, while the SPDR Dow Jones Industrial Average fell by 0.7% to $394.05 [7] - The Energy Select Sector SPDR Fund outperformed with a 3.5% increase, while the Health Care Select Sector SPDR Fund lagged, down 0.1% [7] Notable Stock Movements - Eli Lilly Inc. surged by 16% after announcing successful Phase 3 trials for its oral GLP-1 receptor agonist, Orforglipron [7] - Fidelity National Information Services jumped by 9% following a $13.5 billion acquisition of Global Payments Inc.'s Issuer Solutions business, expected to generate over $125 million in annual revenue synergies [7] - Companies reacting to earnings reports included American Express Co. up 0.5%, Blackstone Inc. up 1.9%, and Charles Schwab Corp. up 2.7% [7] - Netflix Inc. rose by 2% ahead of its earnings report scheduled for release after market close [7]