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Global Payments' (GPN) Q1 Earnings Beat Estimates, Rise Y/Y
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Global Payments Inc.’s (GPN - Free Report) first-quarter 2021 adjusted earnings of $1.82 per share beat the Zacks Consensus Estimate by 2.8%. Also, the bottom line improved 15% year over year on the back of better revenues.
Additionally, adjusted net revenues increased 5% year over year to $1.81 billion. Moreover, the top line beat the Zacks Consensus Estimate by 2.7%. Total expenses were up 3.3% year over year to $1.71 billion due to higher selling, general and administrative costs.
The company’s results reflect constant market recovery and better performances by its Merchant Solutions, and Business and Consumer Solution segments.
Global Payments Inc. Price, Consensus and EPS Surprise
Merchant Solutions: Adjusted revenues of $1.1 billion increased 4.4% year over year. Operating income of $532.1 million was up 6.3% year over year.
Issuer Solutions: Adjusted net revenues of $439.3 million slid 0.6% year over year. Operating income of $189.7 million increased 8.7% year over year.
Business and Consumer Solution: Adjusted net revenues came in at $243.5 million, up 19.4% year over year. Operating income was $80.8 million, up 54.1% year over year.
Balance Sheet Position (as of Mar 31, 2021)
Total cash and cash equivalents were $2.08 billion, which rose 7% from the level as of Dec 31, 2020.
Long-term debt was $9.6 billion, up 13.7% from the level at 2020 end.
Share Repurchase and Dividend Update
The board of directors cleared a dividend of 19.5 cents per share, payable Jun 25, 2021 to its shareholders of record as of Jun 11, 2021.
Net cash provided by operating activities in the first quarter of 2021 was $599.4 million, up 37.3% year over year.
2021 Guidance
The company now expects 2021 adjusted net revenues in the range of $7.550-$7.625, up from the previous range of $7.50-$7.60 billion.
Adjusted earnings per share are likely to be in the $7.87-$8.07 band, up from the prior forecast of $7.75-$8.05. The midpoint reflects an upside of 24.5% from 2020’s reported figure.
Of the finance sector players that have reported first-quarter results so far, the bottom-line results of American Express Company (AXP - Free Report) , Synchrony Financial (SYF - Free Report) and Discover Financial Services (DFS - Free Report) beat the respective Zacks Consensus Estimate.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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Global Payments' (GPN) Q1 Earnings Beat Estimates, Rise Y/Y
Global Payments Inc.’s (GPN - Free Report) first-quarter 2021 adjusted earnings of $1.82 per share beat the Zacks Consensus Estimate by 2.8%. Also, the bottom line improved 15% year over year on the back of better revenues.
Additionally, adjusted net revenues increased 5% year over year to $1.81 billion. Moreover, the top line beat the Zacks Consensus Estimate by 2.7%.
Total expenses were up 3.3% year over year to $1.71 billion due to higher selling, general and administrative costs.
The company’s results reflect constant market recovery and better performances by its Merchant Solutions, and Business and Consumer Solution segments.
Global Payments Inc. Price, Consensus and EPS Surprise
Global Payments Inc. price-consensus-eps-surprise-chart | Global Payments Inc. Quote
Segmental Performances
Merchant Solutions: Adjusted revenues of $1.1 billion increased 4.4% year over year. Operating income of $532.1 million was up 6.3% year over year.
Issuer Solutions: Adjusted net revenues of $439.3 million slid 0.6% year over year. Operating income of $189.7 million increased 8.7% year over year.
Business and Consumer Solution: Adjusted net revenues came in at $243.5 million, up 19.4% year over year. Operating income was $80.8 million, up 54.1% year over year.
Balance Sheet Position (as of Mar 31, 2021)
Total cash and cash equivalents were $2.08 billion, which rose 7% from the level as of Dec 31, 2020.
Long-term debt was $9.6 billion, up 13.7% from the level at 2020 end.
Share Repurchase and Dividend Update
The board of directors cleared a dividend of 19.5 cents per share, payable Jun 25, 2021 to its shareholders of record as of Jun 11, 2021.
Net cash provided by operating activities in the first quarter of 2021 was $599.4 million, up 37.3% year over year.
2021 Guidance
The company now expects 2021 adjusted net revenues in the range of $7.550-$7.625, up from the previous range of $7.50-$7.60 billion.
Adjusted earnings per share are likely to be in the $7.87-$8.07 band, up from the prior forecast of $7.75-$8.05. The midpoint reflects an upside of 24.5% from 2020’s reported figure.
Zacks Rank
Global Payments carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Sector Releases
Of the finance sector players that have reported first-quarter results so far, the bottom-line results of American Express Company (AXP - Free Report) , Synchrony Financial (SYF - Free Report) and Discover Financial Services (DFS - Free Report) beat the respective Zacks Consensus Estimate.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>