Global Payments Reports Record Revenue and Earnings, Beating Analyst Expectations
May 2, 2023
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Global Payments ($NYSE:GPN), Inc. is a leading worldwide provider of payment technology and software solutions delivering innovative services to merchants, financial institutions, and payment facilitators. The company recently reported record revenue and earnings in its latest quarterly report, beating analyst expectations. Global Payments reported Non-GAAP earnings per share of $2.40, exceeding expectations by $0.09, and revenue of $2.29 billion, surpassing forecasts by $280 million. He also expressed his confidence in the future, saying that “we remain focused on delivering solutions that meet the evolving needs of our customers and creating long-term value for shareholders”.
As market demand for digital payments continues to increase, Global Payments is well positioned to capitalize on this trend and maintain its strong performance. The company’s record results demonstrate its ability to deliver innovative solutions that enable customers to effectively meet the challenges associated with a rapidly changing payments landscape.
Share Price
Monday was an eventful day for GLOBAL PAYMENTS, as the company reported record revenue and earnings for the quarter, beating analysts’ expectations. The stock opened at $108.5 and closed at $103.0, representing a drop of 8.6% from its prior closing price of 112.7. Despite this initial reaction, investors were encouraged by the strong results and by the prospect of sustained growth in the future. Overall, GLOBAL PAYMENTS’ strong results were a welcome surprise for investors.
With record revenue and earnings, the company was able to demonstrate its commitment to long-term growth and profitability. As such, investors remain optimistic that GLOBAL PAYMENTS will continue to outperform expectations in the months and years ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Global Payments. More…
| Total Revenues | Net Income | Net Margin |
| 8.98k | 111.49 | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Global Payments. More…
| Operations | Investing | Financing |
| 2.24k | -675.54 | -1.38k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Global Payments. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 44.81k | 22.27k | 84.78 |
Key Ratios Snapshot
Some of the financial key ratios for Global Payments are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.3% | 28.3% | 7.5% |
| FCF Margin | ROE | ROA |
| 18.1% | 1.9% | 0.9% |
Analysis
At GoodWhale, we have taken a deep dive into the financials of GLOBAL PAYMENTS and our analysis shows that this company is strong in dividend and growth and moderately strong in profitability. However, the company is weaker when it comes to asset allocation. Our overall health score for GLOBAL PAYMENTS is 6 out of 10, suggesting that it is likely to pay off its debt and fund future operations. We classify GLOBAL PAYMENTS as a “rhino” type of company, meaning that it has achieved moderate revenue or earnings growth. As such, this type of company may be appealing to investors who are looking for stable but moderate returns. It may also be a good choice for investors who are looking for a diversified portfolio that includes a mix of slow-growing but income-producing stocks. More…
Peers
The company operates in three segments: Merchant Services, Issuer Solutions and Card Services. Global Payments Inc’s main competitors are The Brink’s Co, Thomson Reuters Corp and BLS International Services Ltd.
– The Brink’s Co ($NYSE:BCO)
Brink’s Company is a provider of security and logistics services. The company operates in more than 50 countries and employs over 70,000 people. The company has a market cap of 2.85B as of 2022 and a ROE of 97.45%. Brink’s provides a broad range of services including cash management, ATM servicing, armored car transportation, and security solutions for businesses and governments.
– Thomson Reuters Corp ($TSX:TRI)
Thomson Reuters Corp is a large Canadian multinational media and information company with a market cap of 67.4 billion as of 2022. It has a wide range of businesses including news, information and analytics, and tax and accounting software. Its return on equity was 7.59% in 2020.
– BLS International Services Ltd ($BSE:540073)
BLS International Services Ltd is a market leader in the provision of outsourced visa and passport processing services. The company has a strong focus on customer service and has a proven track record in the delivery of high quality services. BLS International Services Ltd has a market capitalisation of 68.62B as of 2022 and a return on equity of 13.87%. The company offers a wide range of services including visa processing, passport processing, identity management and biometric services.
Summary
Global Payments is a leader in the electronic payment processing industry, providing a range of solutions to merchants, financial institutions, and businesses worldwide. Revenue came in at $2.29 billion, beating estimates by $280 million. Despite this positive news, the stock price moved down the same day.
This could be due to recent market volatility and investors remain cautious about the company’s future outlook. Fundamental analysis suggests that the company is well-positioned to benefit from its growing market share, and long-term investors may be wise to consider buying on any dips.
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