Global Payments (GPN) Q2 Earnings Beat on Transaction Growth

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].