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Global Payments (GPN) Reliance on International Sales: What Investors Need to Know
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Have you assessed how the international operations of Global Payments (GPN - Free Report) performed in the quarter ended March 2024? For this electronics payment processing company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of GPN's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $2.18 billion, experiencing an increase of 6.6% year over year. Next, we'll explore the breakdown of GPN's international revenue to understand the importance of its overseas business operations.
A Look into GPN's International Revenue Streams
Europe generated $384.75 million in revenues for the company in the last quarter, constituting 17.6% of the total. This represented a surprise of +1.13% compared to the $380.45 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $406.03 million (18.6%), and in the year-ago quarter, it contributed $293.2 million (14.3%) to the total revenue.
Asia Pacific accounted for 2.8% of the company's total revenue during the quarter, translating to $60.31 million. Revenues from this region represented a surprise of -6.54%, with Wall Street analysts collectively expecting $64.53 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $69.44 million (3.2%) and $63.62 million (3.1%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Global Payments to report a total revenue of $2.32 billion in the current fiscal quarter, which suggests an increase of 5.2% from the prior-year quarter. Revenue shares from Europe and Asia Pacific are predicted to be 18.4% and 3%, corresponding to amounts of $425.44 million and $68.55 million, respectively.
For the full year, the company is expected to generate $9.23 billion in total revenue, up 6.4% from the previous year. Revenues from Europe and Asia Pacific are expected to constitute 18% ($1.66 billion) and 2.9% ($271.56 million) of the total, respectively.
Key Takeaways
The dependency of Global Payments on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Exploring Recent Trends in Global Payments' Stock Price
Over the preceding four weeks, the stock's value has diminished by 11.6%, against a downturn of 1.6% in the Zacks S&P 500 composite. In parallel, the Zacks Business Services sector, which counts Global Payments among its entities, has depreciated by 3.4%. Over the past three months, the company's shares have seen a decline of 18.1% versus the S&P 500's 3.8% increase. The sector overall has witnessed an increase of 1.3% over the same period.
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Global Payments (GPN) Reliance on International Sales: What Investors Need to Know
Have you assessed how the international operations of Global Payments (GPN - Free Report) performed in the quarter ended March 2024? For this electronics payment processing company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of GPN's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $2.18 billion, experiencing an increase of 6.6% year over year. Next, we'll explore the breakdown of GPN's international revenue to understand the importance of its overseas business operations.
A Look into GPN's International Revenue Streams
Europe generated $384.75 million in revenues for the company in the last quarter, constituting 17.6% of the total. This represented a surprise of +1.13% compared to the $380.45 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $406.03 million (18.6%), and in the year-ago quarter, it contributed $293.2 million (14.3%) to the total revenue.
Asia Pacific accounted for 2.8% of the company's total revenue during the quarter, translating to $60.31 million. Revenues from this region represented a surprise of -6.54%, with Wall Street analysts collectively expecting $64.53 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $69.44 million (3.2%) and $63.62 million (3.1%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Global Payments to report a total revenue of $2.32 billion in the current fiscal quarter, which suggests an increase of 5.2% from the prior-year quarter. Revenue shares from Europe and Asia Pacific are predicted to be 18.4% and 3%, corresponding to amounts of $425.44 million and $68.55 million, respectively.
For the full year, the company is expected to generate $9.23 billion in total revenue, up 6.4% from the previous year. Revenues from Europe and Asia Pacific are expected to constitute 18% ($1.66 billion) and 2.9% ($271.56 million) of the total, respectively.
Key Takeaways
The dependency of Global Payments on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Global Payments, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in Global Payments' Stock Price
Over the preceding four weeks, the stock's value has diminished by 11.6%, against a downturn of 1.6% in the Zacks S&P 500 composite. In parallel, the Zacks Business Services sector, which counts Global Payments among its entities, has depreciated by 3.4%. Over the past three months, the company's shares have seen a decline of 18.1% versus the S&P 500's 3.8% increase. The sector overall has witnessed an increase of 1.3% over the same period.