NYSE$GPN

Global Payments Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Delivered record third quarter results and provided updated outlook for 2021.

Global Payments Inc. announced strong third-quarter results, with adjusted net revenues increasing by 15% and adjusted earnings per share increasing by 28%. The company also updated its full-year outlook for 2021, expecting adjusted net revenue to be in the range of $7.71 billion to $7.73 billion, reflecting growth of 14% to 15%, and adjusted earnings per share to be in a range of $8.10 to $8.20, or growth of 27% to 28% over 2020.

  • Renewed key issuer technology partnerships with CIBC and CITI as a top SaaS provider.
  • Significantly expanded the relationship with PayPal, including support of cryptocurrencies.
  • Selected by Mercedes-Benz Stadium to maximize its connected commerce environment.
  • Formally entered the B2B market with the acquisition of MineralTree.

Headline financials

Total Revenue

$2.2B

Previous: $1.92B+14.8%
EPS (adj)

$2.18

Previous: $1.71+27.5%
Adjusted Operating Margin

42.8%

Previous: 41.1%+4.1%
Free Cash Flow

$297M

Previous: $221M+34.3%
Net Income

$297M

Previous: $221M+34.3%
Operating Income

$400M

Previous: $290M+37.8%
Gross Profit

$1.26B

Previous: $1.02B+23.7%
Cash & Equivalents

$2.35B

Previous: $2.22B+5.7%
Total Assets

$45.8B

Previous: $44.5B+2.7%
Stock-Based Comp

$65.6M

Previous: $42.3M+55.2%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$2.2B

Q3 2021+14.8%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Global Payments · $2.02B total across 2 segments · Q3 2021

  • Merchant Solutions
    $1.5B+20.3%
  • Issuer Solutions
    $522M+7.1%

Forward guidance

Global Payments expects full year 2021 adjusted net revenue to be in the range of $7.71 billion to $7.73 billion, reflecting growth of 14% to 15%, and adjusted earnings per share to be in a range of $8.10 to $8.20, or growth of 27% to 28% over 2020.

Tailwinds

  • Expects full year 2021 adjusted net revenue to be in the range of $7.71 billion to $7.73 billion.
  • Adjusted net revenue growth of 14% to 15%.
  • Adjusted earnings per share to be in a range of $8.10 to $8.20.
  • Adjusted earnings per share growth of 27% to 28% over 2020.
  • Presumes a consistent macroeconomic environment for the remainder of the year with no change to the COVID-19 outlook globally.

Headwinds

  • The COVID-19 pandemic could affect future revenues, financial operating results and liquidity.
  • Difficulties, delays and higher than anticipated costs related to integrating the businesses of Global Payments and TSYS.
  • Failing 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.
  • Increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets.

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 Q3 2021

Historical avgQ3 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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