Global Payments (GPN) Third Quarter Results

GPN Global Payments

Global Payments (GPN) reported the financial results for the Q3 that ended September 30, 2022. The revenue beat the expectations while profit was in line with the forecasts.

GPN net income was reported at $290.5 million, or $1.05 a share. In the Q3 of 2021, net income reported at $296.7 million, or $1.01 per share. The adjusted Earnings Per Share rose to $2.48 from $2.18, in line with the forecasts of $2.48.

The revenue increased by 3.8% to $2.29 billion, topping the analyst’s expectations of $2.04 billion.

The Merchant solutions sector revenue grew 10.1% to $1.59 billion, beating the estimates of $1.48 billion

The Issuer solutions sector revenue grew by 15.7% to $566.0 million.

The Consumer solutions revenue grew by 3.3% to $147.3 million.

Global Payments has $2.2 billion in cash.

GPN 2022 Outlook

For the full year 2022, the company reiterated its outlook for revenue growth between 10% to 11% and adjusted EPS of $9.53 to $9.75 which represents a growth of 17% to 20%. The company also estimates an operating margin expansion of up to 170 bp, an increase from the previous forecast of 150 bp.

The company’s management approved a dividend of $0.25 per share and the dividend yield now stands at 0.87%. The Board has also authorized a share repurchase program of up to $1.5 billion.

Global Payments announced on August 1, it would buy the software firm EVO Payments in a $2.8 billion deal.

Global Payments Price

Global Payments gives up 7.95% today at $115.33 despite the better-than-expected revenue figures announced earlier today. The stock is down 14.68% since the beginning of the year and over 20% in the past 12 months.

Today’s sharp move down has deteriorated the technical picture for GPN stock, The price breached below the 50 and 100-day moving averages and now bears are in full control. Initial support for the stock stands at $113.35, while the October 13 low at $104.23 is a level that might attract many buyers.

On the contrary, now the 100-day moving average has turned into resistance at $119.99. A break above might spark more bids that can push the price towards $127.32 the 200-day moving average.

Mizuho Securities earlier today reiterated GPN at Hold Rating with a price target of $132.00. On October 18, Raymond James Investment banking company reiterated the Buy rating on GPN stock with a price target of $160.00.

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