Core Viewpoint - Global Payments Inc. (GPN) reported strong second-quarter 2024 results, with adjusted earnings per share (EPS) of $2.93, exceeding estimates and showing an 11.8% year-over-year increase [1]. Financial Performance - Adjusted net revenues rose 5.5% year over year to $2.32 billion, surpassing the consensus estimate of $2.31 billion [1]. - Adjusted operating income increased 6.4% year over year to $1.1 billion, beating the estimate of $1 billion, with an adjusted operating margin improvement of 40 basis points to 45.2% [3]. - Total operating expenses increased 7.9% year over year to $2 billion, primarily due to higher selling, general and administrative expenses [4]. Segmental Performance - Merchant Solutions segment reported adjusted revenues of $1.81 billion, a 7.8% year-over-year increase, exceeding the estimate of $1.79 billion, driven by double-digit growth in the ISV channel and over 20% growth in the LATAM region [5]. - Issuer Solutions segment had adjusted revenues of $526.5 million, growing 4.2% year over year but missing the consensus estimate of $535.6 million [6]. Financial Position - As of June 30, 2024, the company had cash and cash equivalents of $2.1 billion, total assets of $50.8 billion, and long-term debt of $15.6 billion [7]. - Total equity decreased to $23 billion from $23.3 billion at the end of 2023 [7]. Capital Deployment - The company repurchased shares worth $900 million in the first half of 2024 and declared a quarterly dividend of 25 cents per share, payable on September 27, 2024 [9]. 2024 Outlook - Adjusted net revenues are expected to be between $9.17 billion and $9.30 billion, indicating a 6-7% improvement from 2023 [10]. - Adjusted EPS is anticipated to be between $11.54 and $11.70, suggesting an 11-12% growth from 2023 [11].

Global Payments (GPN) reported $2.32 billion in revenue for the quarter ended June 2024, representing a yearover-year increase of 5.5%. EPS of $2.93 for the same period compares to $2.62 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.31 billion, representing a surprise of +0.40%. The company delivered an EPS surprise of +0.69%, with the consensus EPS estimate being $2.91. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Financial Data and Key Metrics Changes - The company achieved adjusted net revenue of $2.32 billion for Q2 2024, reflecting a 6% increase from the prior year, or 7% excluding the impact of the Netspend divestiture [20][21] - Adjusted operating margin increased by 40 basis points to 45.2%, with adjusted earnings per share growing by 12% to $2.93 compared to the same period in 2023 [20][21] - Adjusted free cash flow for the quarter was approximately $680 million, representing a 25% increase year-over-year and a conversion rate of about 91% of adjusted net income [27][28] Business Line Data and Key Metrics Changes - Merchant Solutions generated adjusted net revenue of $1.8 billion, reflecting an 8% growth, with high single-digit growth in the U.S. business and double-digit growth in integrated payments and point-of-sale businesses [21][22] - Issuer Solutions produced adjusted net revenue of $527 million, reflecting over 4% growth, with 8 million new accounts added sequentially [24][26] - The company saw a 50% increase in new ISV partnerships leveraging the PayFabric platform, indicating strong demand for B2B acceptance solutions [7][21] Market Data and Key Metrics Changes - In Europe, the company achieved mid-single-digit organic growth, particularly in faster-growing geographies like Poland and Greece, while LATAM experienced double-digit growth driven by strong payment trends in Mexico [22][23] - The Asia Pacific region faced ongoing macroeconomic weakness, impacting performance [22] Company Strategy and Development Direction - The company is focused on simplifying its portfolio and streamlining operations to enhance customer-centric solutions and drive sustainable growth [32][33] - Investments are being made to maintain leadership in embedded commerce capabilities and to expand into international markets, including Germany and other European countries [13][14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, citing diversification across verticals and geographies as a strength amid macroeconomic uncertainty [35][36] - The outlook for adjusted net revenue for the full year is expected to range from $9.17 billion to $9.30 billion, reflecting growth of 6% to 7% over 2023 [29][30] Other Important Information - The company appointed Bob Cortopassi as President and Chief Operating Officer, emphasizing his growth-oriented leadership and experience [20] - The company completed two small tuck-in acquisitions in Europe to enhance strategic positioning [14][15] Q&A Session Summary Question: Thoughts on discretionary vs. nondiscretionary volumes in merchant - Management believes the portfolio is well diversified across discretionary and nondiscretionary verticals, maintaining confidence in the business model's resilience [35][36] Question: Impact of ProFac on ISV signings - ProFac fills a market need for smaller ISVs needing payment facilitation capabilities without taking on full responsibilities, leading to increased signings [37] Question: Merchant volume growth and its drivers - Merchant volume growth was 6%, with a slight sequential decline attributed to macroeconomic factors and the leap year effect [39] Question: Merchant margins and outlook - Merchant margins increased by 30 basis points, outperforming expectations, driven by strong execution and attractive growth trends [40][41] Question: Growth potential in the ISV channel - The ISV channel is seen as a key growth area, with increasing importance of software technology in payment decisions for SMB clients [42][43] Question: Direct sales channel strategy - The company is reorienting its direct sales channel towards technology-enabled solutions, focusing on integrated and point-of-sale software sales [55][56]

Core Viewpoint - Global Payments reported quarterly earnings of $2.93 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, and showing an increase from $2.62 per share a year ago, indicating a positive earnings surprise of 0.69% [1][2] Financial Performance - The company achieved revenues of $2.32 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.40%, and up from $2.2 billion in the same quarter last year [2] - Over the last four quarters, Global Payments has consistently exceeded consensus EPS and revenue estimates [2] Stock Performance - Global Payments shares have declined approximately 26.8% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.14 on revenues of $2.39 billion, while the estimate for the current fiscal year is $11.63 on revenues of $9.23 billion [7] - The trend of estimate revisions for Global Payments has been unfavorable leading up to the earnings release [6] Industry Context - The Financial Transaction Services industry, to which Global Payments belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Core Viewpoint - Global Payments Inc. (GPN) is expected to report second-quarter 2024 results on August 7, with earnings estimated at $2.91 per share, reflecting an 11.1% increase year-over-year, and revenues projected at $9.2 billion, indicating a 6.4% growth from the previous year [1] Earnings Performance - GPN has consistently beaten consensus earnings estimates in the last four quarters, with an average surprise of 1.1% [2] - The current Earnings ESP for GPN is -0.98%, with the Most Accurate Estimate at $2.88 per share, which is lower than the consensus estimate [3] Zacks Rank and Predictions - GPN currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to higher-ranked stocks [4] Segment Performance - Merchant Solutions, GPN's largest segment, is expected to see a 6.9% increase in adjusted revenues year-over-year, driven by growing transaction volumes and new partnerships [5] - The adjusted operating income for Merchant Solutions is projected to grow by 6.8% according to consensus estimates [6] - Issuer Solutions is also expected to show nearly 6% growth in adjusted revenues, supported by core issuer growth and expanding accounts [7] - Revenue estimates for the Americas and Europe operations indicate year-over-year increases of 3.2% and 4.4%, respectively [8] Cost and Expenses - Increased costs are anticipated to partially offset profits, with adjusted selling, general, and administrative expenses expected to rise over 6% year-over-year [9] - The adjusted cost of service is projected to be around $523 million, with total operating expenses expected to climb 4.4% year-over-year [10] Stock Performance - GPN's stock has declined by 22.7% year-to-date, contrasting with a 4.5% growth in the industry and a 14.5% gain in the S&P 500 [11] - Competitors like Mastercard and Fidelity National Information Services have shown positive stock performance, while GPN's decline reflects investor concerns [11] Market Dynamics - Rising competition from emerging payment firms may impact GPN's pricing and margins, alongside increasing operating expenses despite cost control measures [13] - The decline in share price suggests diminishing investor confidence, with expectations of reduced consumer spending due to declining savings and weak disposable income growth [13]

Wall Street analysts expect Global Payments (GPN) to post quarterly earnings of $2.91 per share in its upcoming report, which indicates a year-over-year increase of 11.1%. Revenues are expected to be $2.31 billion, up 5.1% from the year-ago quarter. Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this tim ...

You must be wondering why we are considering this when the most widely used valuation metric is Price/Earnings (or P/E). Well, an important factor that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company's financial health. Investors are looking to balance AI-driven market gains with cautious optimism surrounding future rate cuts. The Fed's stance on monetary policy remains pivotal as it ...

Due to its solid prospects, this currently Zacks Rank #2 (Buy) stock presents an attractive investment opportunity for investors at the moment. Let's delve deeper & check the positives for the stock. Seven estimates for the 2024 bottom line moved north in the past 60 days versus two southward revisions, reflecting the majority of analysts' confidence in the company. The Zacks Consensus Estimate for GPN's 2024 bottom line of $11.64 per share indicates an 11.7% year-over-year increase. The consensus estimate ...

These are just a few of the metrics contributing to GPN's Value grade of A and MA's Value grade of D. Investors with an interest in Financial Transaction Services stocks have likely encountered both Global Payments (GPN) and MasterCard (MA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at th ...

It also includes access to the Zacks Style Scores. The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days. Value Score VGM Score The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnin ...