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What to Expect From Global Payments' (GPN) Q2 Earnings?
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Global Payments Inc. (GPN - Free Report) is scheduled to report second-quarter 2022 results on Aug 1, before the opening bell.
Q2 Estimates
The Zacks Consensus Estimate for Global Payments’ second-quarter earnings per share is pegged at $2.25, which indicates an improvement of 17.2% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $2.1 billion, suggesting an 8.1% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Global Payments boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average surprise being 3.06%. This is depicted in the chart below:
Revenues of Global Payments are likely to have benefited from higher contributions from its Merchants Solutions and Issuer Solutions segments in the second quarter. A strong vertical markets portfolio riding on favorable booking trends might have contributed to the sound performance of the Merchant Solutions segment. Strong software businesses may have also driven the segment’s performance in the to-be-reported quarter. Meanwhile, the continued execution of a technology-enabled strategy by GPN is likely to have favored the operating results of the Merchant Solutions segment.
The Zacks Consensus Estimate for revenues from the Merchant Solutions segment is pegged at $1.4 billion, indicating a 12% improvement from the prior-year quarter’s reported figure. The consensus mark for the segment’s operating income stands at $709 million, suggesting growth of 13.4% from the year-ago quarter’s reported number.
The addition of the leading accounts payable automation and business-to-business (B2B) payments solutions provider MineralTree during the first quarter might have aided the second-quarter performance of the Issuer Solutions segment. Meanwhile, continued recovery from the COVID-19 pandemic may have resulted in growth of commercial cards in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from the Issuer Solutions segment is pegged at $467 million, which indicates growth of 4.7% from the prior-year quarter’s reported figure. The consensus mark for the segment’s operating income stands at $205 million, suggesting an improvement of 4.6% from the year-ago quarter’s reported number.
However, GPN’s Business and Consumer Solutions segment is expected to have suffered in the second quarter as it lapped stimulus and higher levels of unemployment assistance benefits for two years.
The Zacks Consensus Estimate for revenues from the Business and Consumer Solutions segment is pegged at $225 million, which indicates a 0.9% decline from the prior-year quarter’s reported figure. The consensus mark for the segment’s operating income stands at $55 million, suggesting a decrease of 9.8% from the year-ago quarter’s reported number.
Continuous investments to upgrade digital capabilities with an aim to drive organizational efficiencies might have weighed on margins of Global Payments in the to-be-reported quarter. Elevated operating costs arising from higher cost of service and selling, general and administrative expenses may have hampered bottom-line growth in the second quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Global Payments this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: Global Payments has an Earnings ESP of -2.19% because the Most Accurate Estimate of $2.31 is pegged lower than the Zacks Consensus Estimate of $2.36. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While an earnings beat looks uncertain for Global Payments, here are some companies from the Business Services space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +4.58% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for Avis Budget’s second-quarter 2022 earnings is pegged at $38.87 per share, which indicates a 72.8% surge from the prior-year quarter’s reported figure.
CAR beat earnings estimates in each of the trailing four quarters.
Dun & Bradstreet Holdings, Inc. (DNB - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for Dun & Bradstreet’s second-quarter 2022 earnings is pegged at $1.16 per share, which indicates a 5.5% increase from the prior-year quarter’s reported figure.
DNB beat earnings estimates in each of the trailing four quarters.
FLEETCOR Technologies, Inc. has an Earnings ESP of +1.03% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for FLEETCOR Technologies’ second-quarter 2022 earnings is pegged at $15.64 per share, which indicates a 18.4% increase from the prior-year quarter’s reported figure.
FLT beat earnings estimates in each of the trailing four quarters.
Image: Bigstock
What to Expect From Global Payments' (GPN) Q2 Earnings?
Global Payments Inc. (GPN - Free Report) is scheduled to report second-quarter 2022 results on Aug 1, before the opening bell.
Q2 Estimates
The Zacks Consensus Estimate for Global Payments’ second-quarter earnings per share is pegged at $2.25, which indicates an improvement of 17.2% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $2.1 billion, suggesting an 8.1% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Global Payments boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average surprise being 3.06%. This is depicted in the chart below:
Global Payments Inc. Price and EPS Surprise
Global Payments Inc. price-eps-surprise | Global Payments Inc. Quote
Factors to Note
Revenues of Global Payments are likely to have benefited from higher contributions from its Merchants Solutions and Issuer Solutions segments in the second quarter. A strong vertical markets portfolio riding on favorable booking trends might have contributed to the sound performance of the Merchant Solutions segment. Strong software businesses may have also driven the segment’s performance in the to-be-reported quarter. Meanwhile, the continued execution of a technology-enabled strategy by GPN is likely to have favored the operating results of the Merchant Solutions segment.
The Zacks Consensus Estimate for revenues from the Merchant Solutions segment is pegged at $1.4 billion, indicating a 12% improvement from the prior-year quarter’s reported figure. The consensus mark for the segment’s operating income stands at $709 million, suggesting growth of 13.4% from the year-ago quarter’s reported number.
The addition of the leading accounts payable automation and business-to-business (B2B) payments solutions provider MineralTree during the first quarter might have aided the second-quarter performance of the Issuer Solutions segment. Meanwhile, continued recovery from the COVID-19 pandemic may have resulted in growth of commercial cards in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from the Issuer Solutions segment is pegged at $467 million, which indicates growth of 4.7% from the prior-year quarter’s reported figure. The consensus mark for the segment’s operating income stands at $205 million, suggesting an improvement of 4.6% from the year-ago quarter’s reported number.
However, GPN’s Business and Consumer Solutions segment is expected to have suffered in the second quarter as it lapped stimulus and higher levels of unemployment assistance benefits for two years.
The Zacks Consensus Estimate for revenues from the Business and Consumer Solutions segment is pegged at $225 million, which indicates a 0.9% decline from the prior-year quarter’s reported figure. The consensus mark for the segment’s operating income stands at $55 million, suggesting a decrease of 9.8% from the year-ago quarter’s reported number.
Continuous investments to upgrade digital capabilities with an aim to drive organizational efficiencies might have weighed on margins of Global Payments in the to-be-reported quarter. Elevated operating costs arising from higher cost of service and selling, general and administrative expenses may have hampered bottom-line growth in the second quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Global Payments this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: Global Payments has an Earnings ESP of -2.19% because the Most Accurate Estimate of $2.31 is pegged lower than the Zacks Consensus Estimate of $2.36. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GPN currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Global Payments, here are some companies from the Business Services space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +4.58% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for Avis Budget’s second-quarter 2022 earnings is pegged at $38.87 per share, which indicates a 72.8% surge from the prior-year quarter’s reported figure.
CAR beat earnings estimates in each of the trailing four quarters.
Dun & Bradstreet Holdings, Inc. (DNB - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for Dun & Bradstreet’s second-quarter 2022 earnings is pegged at $1.16 per share, which indicates a 5.5% increase from the prior-year quarter’s reported figure.
DNB beat earnings estimates in each of the trailing four quarters.
FLEETCOR Technologies, Inc. has an Earnings ESP of +1.03% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for FLEETCOR Technologies’ second-quarter 2022 earnings is pegged at $15.64 per share, which indicates a 18.4% increase from the prior-year quarter’s reported figure.
FLT beat earnings estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.