NYSE$GPN

Global Payments Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Returned to growth and achieved sequential expansion, driven by strategic investments and consistent execution.

Global Payments reported a return to growth in Q1 2021, with adjusted net revenues increasing by 5% to $1.81 billion and adjusted earnings per share increasing by 15% to $1.82. The company also raised its full-year 2021 outlook for adjusted net revenue and adjusted earnings per share.

  • Returned to growth in the first quarter of 2021.
  • Adjusted earnings per share increased 15% to $1.82.
  • Adjusted operating margin expanded 160 basis points.
  • Raising expectations for full year 2021 adjusted net revenue and adjusted earnings per share.

Headline financials

Total Revenue

$1.99B

Previous: $1.9B+4.5%
EPS (adj)

$1.82

Previous: $1.58+15.2%
Adjusted Operating Margin

40.6%

Previous: 39.0%+4.1%
Free Cash Flow

$197M

Previous: $144M+37.0%
Net Income

$197M

Previous: $144M+37.0%
Operating Income

$275M

Previous: $244M+12.8%
Gross Profit

$1.06B

Previous: $970M+9.8%
Cash & Equivalents

$2.08B

Previous: $1.8B+15.7%
Total Assets

$44.3B

Previous: $43.8B+0.9%
Stock-Based Comp

$37.2M

Previous: $27.8M+33.6%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$1.99B

Q1 2021+4.5%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Global Payments · $1.77B total across 2 segments · Q1 2021

  • Merchant Solutions
    $1.27B+15.1%
  • Issuer Solutions
    $500M+13.2%

Forward guidance

The company is raising its expectations for full year 2021 adjusted net revenue to be in the range of $7.55 billion to $7.625 billion, reflecting growth of 12% to 13%, and is increasing its adjusted earnings per share estimate to be in a range of $7.87 to $8.07, or growth of 23% to 26% over 2020.

Tailwinds

  • Adjusted net revenue growth of 12% to 13%.
  • Adjusted earnings per share growth of 23% to 26%.
  • Remain on a path toward recovery worldwide over the balance of the year.
  • Expect the Zego and Worldline Austrian business acquisitions to close by the end of the second quarter and in the second half of 2021, respectively.
  • Integration activities remain on track to realize targeted synergies within three years from the close of the TSYS merger.

Headwinds

  • Outlook does not include any impact from the transactions announced today.
  • Difficult comparison given the late March onset of COVID-19 last year.
  • Integration of the businesses of Global Payments and TSYS may face difficulties, delays and higher than anticipated costs.
  • Failure to fully realize anticipated cost savings and other anticipated benefits of the Merger when expected or at all.
  • Business disruptions from the Merger integration that may harm our business, including current plans and operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.8%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.3%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+15.5%

Q4 2025

Best reaction

-12.3%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-2.4%-4.5%
Q4 2025+15.5%+13.9%-1.8%
Q3 2025+3.8%-1.4%+3.4%
Q1 2025+0.0%+1.6%-4.1%
Q4 2024-4.3%-1.6%-13.4%
Q3 2024+4.7%+6.2%+20.1%
Q2 2024+11.9%+8.0%+16.1%
Q1 2024-10.0%-9.5%-17.0%
Q4 2023+1.3%-1.4%-4.5%
Q3 2023+5.0%+9.6%+12.2%
Q2 2023+10.6%+11.2%+14.9%
Q1 2023-10.6%-7.0%-13.3%
Q4 2022+2.8%+5.7%-10.4%
Q3 2022-9.3%-22.2%-17.2%
Q2 2022+3.4%+4.6%+1.6%
Q1 2022-6.5%-11.7%-6.9%
Q4 2021+0.2%-1.7%-13.2%
Q3 2021-7.5%-6.2%-16.5%
Q2 2021-12.3%-8.9%-16.0%
Q1 2021-5.8%-5.2%-9.0%
Q4 2020+2.5%-0.5%+5.7%
Q3 2020-0.9%+4.3%+23.8%
Q2 2020-2.1%-1.8%+3.8%
Q1 2020+4.7%+3.4%+13.4%
Q4 2019-0.2%+1.6%-14.9%
Q3 2019+4.1%+0.6%+9.4%
Q2 2019-2.1%-5.8%-3.4%
Q1 2019+1.3%+0.1%+6.9%
Q4 2018+3.5%+5.0%+14.2%
Q3 2018+5.0%+5.3%+1.8%
Q2 2018+6.1%+5.5%+11.3%
Q1 2018+0.2%+1.2%+0.7%
Q4 2017+6.3%+6.6%+9.7%
Q3 2017-4.4%-4.1%-4.4%
Q2 2017+2.4%+1.6%+0.1%
Q1 2017+6.1%+7.6%+13.9%
Q4 2016-4.8%-8.8%-2.9%
Q3 2016+10.1%
Q2 2016-6.6%
Q1 2016+14.8%
Q4 2015+9.3%
Q3 2015+6.9%
Q2 2015+7.8%
Q1 2015+10.9%
Q4 2014-1.1%
Q3 2014-5.0%
Q2 2014+3.3%
Q1 2014+10.6%
Q4 2013-5.6%
Q3 2013-9.4%
Q2 2013+6.3%
Q1 2013-3.3%
Q4 2012+3.7%
Q3 2012-1.3%
Q2 2012-3.9%
Q1 2012+4.5%
Q4 2009+0.2%
Q4 2011+0.2%
Q3 2010+1.6%
Q3 2011+1.6%
Q2 2010+0.0%
Q2 2011+0.0%
Q1 2010-8.5%
Q1 2011-8.5%
Q4 2010-8.5%

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