Core Viewpoint - Global Payments Inc. has agreed to sell its Payroll business to Acrisure for $1.1 billion, with the deal expected to close in the second half of 2025, pending regulatory approval and other customary conditions [1][2]. Group 1: Transaction Details - The after-tax proceeds from the divestiture will be used to return capital to shareholders, and Global Payments will maintain a partnership with Acrisure to offer integrated human capital management and payroll solutions [2]. - The divestiture aligns with Global Payments' strategy to streamline operations and enhance shareholder value, allowing for increased investments in core business areas [3]. Group 2: Recent Activity and Future Plans - Global Payments has been active in divestitures, including a $13.5 billion sale of its Issuer Solutions business to Fidelity National Information Services, and a net purchase of Worldpay for $22.7 billion, both expected to close in the first half of 2026 [4]. - The company previously divested AdvancedMD in 2024 and parts of its Netspend business in 2023, indicating a trend towards focusing on core operations [5]. Group 3: Shareholder Returns - Global Payments is committed to returning capital to shareholders, with a share repurchase program authorized at $2.5 billion, and has repurchased $446.3 million in shares while paying $61.1 million in dividends in Q1 2025 [6]. - The company's dividend yield stands at 1.3%, surpassing the industry average of 0.6% [6]. Group 4: Market Performance - Over the past month, Global Payments' shares have decreased by 1%, contrasting with a 3.9% growth in the industry [7].

Global Payments (GPN) FY Conference May 13, 2025 01:50 PM ET Speaker0 Okay. We can get started. Sorry. We're little bit late. Hey, Josh. My name is Tien Tsin Huang. I cover the payments and IT services sector at at JPMorgan, and super excited to have Cameron Brady back from Global Payments. He's the CEO of the company. Cameron, thank you for being here with us. Speaker1 Thanks for having us. Speaker0 Cameron, I always I don't know if it's a fair statement, but I always think of you as a student of the indus ...

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 ...

Global Payments (GPN) Q1 2025 Earnings Call May 06, 2025 07:30 AM ET Company Participants Winnie Smith - SVP, IRCameron Bready - Director & CEORobert Cortopassi - President & COOJosh Whipple - Senior Executive Vice President and Chief Financial OfficerAdam Frisch - Senior Managing Director - EquitiesRyan Campbell - VP - Equity ResearchTimothy Chiodo - Managing Director Conference Call Participants Jason Kupferberg - Senior Equity Research AnalystTien-tsin Huang - Senior AnalystDavid Koning - Senior Research ...

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].