NYSE$GPN

Global Payments Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Global Payments' second quarter performance was the best in its history, exceeding expectations despite incremental challenges.

Global Payments Inc. reported strong second-quarter results, with both Merchant and Issuer businesses exceeding targets. The company is also acquiring EVO Payments, receiving a strategic investment from Silver Lake, and selling Netspend's consumer assets to refine its portfolio.

  • GAAP revenues were $2.28 billion, compared to $2.14 billion in the second quarter of 2021.
  • Adjusted net revenues increased 6.1% to $2.06 billion, compared to $1.94 billion in the second quarter of 2021; excluding the Netspend consumer assets, now classified as held for sale, adjusted net revenue increased 9.0%.
  • Adjusted earnings per share increased 15.7% to $2.36, compared to $2.04 in the second quarter of 2021.
  • Adjusted operating margin expanded 200 basis points to 43.8%; excluding the Netspend consumer assets, adjusted operating margin was 45.3%.

Headline financials

Total Revenue

$2.28B

Previous: $2.14B+6.7%
EPS (adj)

$2.36

Previous: $2.04+15.7%
Adjusted Operating Margin

43.8%

Previous: 41.8%+4.8%
Free Cash Flow

-$673M

Previous: $264M-355.3%
Net Income

-$673M

Previous: $264M-355.3%
Operating Income

-$530M

Previous: $363M-246.1%
Gross Profit

$1.32B

Previous: $1.2B+9.8%
Cash & Equivalents

$1.93B

Previous: $1.8B+7.4%
Total Assets

$44.2B

Previous: $45.1B-2.2%
Stock-Based Comp

$47M

Previous: $43.3M+8.5%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$2.28B

Q2 2022+6.7%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Global Payments · $2.12B total across 2 segments · Q2 2022

  • Merchant Solutions
    $1.58B+10.9%
  • Issuer Solutions
    $534M+5.6%

Forward guidance

For 2022, the company expects constant currency adjusted net revenue before dispositions in a range of $8.48 billion to $8.55 billion, reflecting growth of 10% to 11% over 2021 and consistent with prior outlook. Further, adjusted earnings per share on a constant currency basis are expected to be in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021 and consistent with prior outlook. Also, the company is raising its expectation for adjusted operating margin expansion to up to 150 basis points, an increase from the prior outlook of up to 125 basis points.

Tailwinds

  • Expects constant currency adjusted net revenue before dispositions in a range of $8.48 billion to $8.55 billion, reflecting growth of 10% to 11% over 2021.
  • Adjusted earnings per share on a constant currency basis are expected to be in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021.
  • Raising expectation for adjusted operating margin expansion to up to 150 basis points, an increase from the prior outlook of up to 125 basis points.
  • Presumes continuing recovery from the pandemic worldwide.
  • Presumes a stable global macroeconomic environment throughout the remainder of this calendar year.

Headwinds

  • Ongoing macro concerns.
  • Exit of Russian business.
  • Incremental headwinds from adverse foreign currency exchange rates.
  • Acquisition of EVO Payments and the disposition of Netspend’s consumer business to close in the first quarter of 2023.
  • Subject to receipt of regulatory approvals and satisfaction of customary closing conditions.

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 Q2 2022

Historical avgQ2 2022

+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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