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]

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Core Viewpoint - Global Payments reported strong second-quarter earnings, driven by transaction growth and improved operating performance, although some segments missed consensus estimates [2][3][6][7]. Financial Performance - Adjusted EPS for Q2 2024 was $2.93, beating the Zacks Consensus Estimate of $2.91, and rose 11.8% year over year [2]. - Adjusted net revenues increased 5.5% year over year to $2.32 billion, surpassing the consensus mark of $2.31 billion [2]. - Adjusted operating income rose 6.4% year over year to $1.1 billion, exceeding the estimate of $1 billion, with an adjusted operating margin of 45.2% [4]. Operating Expenses - Total operating expenses were $2 billion, up 7.9% year over year, primarily due to higher selling, general and administrative expenses [5]. - Interest and other expenses decreased 16.9% year over year to $159.2 million [5]. Segment Performance - Merchant Solutions segment reported adjusted revenues of $1.81 billion, a 7.8% increase year over year, driven by double-digit growth in the ISV channel and over 20% growth in the LATAM region [6]. - Issuer Solutions segment had adjusted revenues of $526.5 million, growing 4.2% year over year but missing the consensus estimate [7]. Financial Position - As of June 30, 2024, cash and cash equivalents were $2.1 billion, total assets increased to $50.8 billion, and long-term debt decreased to $15.6 billion [8]. - Total equity declined to $23 billion from $23.3 billion at the end of 2023 [8]. 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 [10]. 2024 Outlook - Adjusted net revenues are projected to be between $9.17 billion and $9.30 billion, indicating a 6-7% improvement from 2023 [11]. - Adjusted EPS is expected to be between $11.54 and $11.70, suggesting 11-12% growth from 2023 [12]. Market Position - Global Payments has a subpar Growth Score of D and a Momentum Score of F, but a value grade of B, placing it in the top 40% for this investment strategy [14]. - The stock has a Zacks Rank 3 (Hold), indicating an expected in-line return in the coming months [15].

Core Insights - Global Payments' international operations are crucial for understanding its financial resilience and growth potential [1][2] - The company's ability to tap into international markets is increasingly important for its overall financial health [2][3] Revenue Performance - Total revenue for the quarter was $2.32 billion, reflecting a year-over-year increase of 5.5% [4] - International revenue breakdown shows Europe contributed $434.38 million (18.7%), exceeding analyst expectations of $422.04 million [5] - Asia Pacific accounted for $61.81 million (2.7%), falling short of the expected $64.99 million [6] Future Projections - Analysts project total revenue for the current fiscal quarter to be $2.39 billion, a 6.8% increase year-over-year, with Europe expected to contribute $428.8 million (18%) and Asia Pacific $64.22 million (2.7%) [7] - For the entire year, total revenue is forecasted at $9.23 billion, a 6.5% improvement from the previous year, with Europe contributing $1.65 billion (17.9%) and Asia Pacific $256.26 million (2.8%) [8] Market Dynamics - The reliance on foreign markets presents both opportunities and challenges for Global Payments, necessitating close monitoring of international revenue trends [9][10]

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 ...