NYSE$GPN

Global Payments Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Delivered record results for the third quarter and reaffirmed constant currency outlook, excluding dispositions.

Global Payments Inc. announced record results for the third quarter of 2022, consistent with raised cycle guidance on a constant currency basis and excluding dispositions. The Merchant business delivered strong 11% adjusted net revenue growth (ex Russia) and the Issuer business delivered 6% adjusted net revenue growth, each on a foreign exchange neutral basis relative to the prior year period.

  • GAAP revenues were $2.29 billion, compared to $2.20 billion in the third quarter of 2021.
  • Adjusted net revenues increased 3% (6% constant currency) to $2.06 billion, compared to $2.00 billion in the third quarter of 2021.
  • Adjusted earnings per share increased 14% (18% constant currency) to $2.48, compared to $2.18 in the third quarter of 2021.
  • Adjusted operating margin expanded 240 basis points to 45.2%.

Headline financials

Total Revenue

$2.29B

Previous: $2.2B+3.8%
EPS (adj)

$2.48

Previous: $2.18+13.8%
Adjusted Operating Margin

45.2%

Previous: 42.8%+5.6%
Free Cash Flow

$290M

Previous: $297M-2.1%
Net Income

$290M

Previous: $297M-2.1%
Operating Income

$386M

Previous: $400M-3.4%
Gross Profit

$1.35B

Previous: $1.26B+7.6%
Cash & Equivalents

$1.99B

Previous: $2.35B-15.1%
Total Assets

$43.9B

Previous: $45.8B-4.0%
Stock-Based Comp

$37.1M

Previous: $65.6M-43.5%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$2.29B

Q3 2022+3.8%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Global Payments · $2.16B total across 2 segments · Q3 2022

  • Merchant Solutions
    $1.6B+6.7%
  • Issuer Solutions
    $566M+8.4%

Forward guidance

For 2022, the company continues to expect constant currency adjusted net revenue growth of 10% to 11% over 2021, excluding dispositions. Further, the company continues to expect adjusted earnings per share on a constant currency basis to be in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021. The company also now expects adjusted operating margin expansion of up to 170 basis points, an increase from the prior outlook of up to 150 basis points.

Tailwinds

  • Continuing recovery from the pandemic worldwide
  • Stable global macroeconomic environment throughout the remainder of this calendar year.
  • Constant currency adjusted net revenue growth of 10% to 11% over 2021, excluding dispositions.
  • Adjusted earnings per share on a constant currency basis to be in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021.
  • Adjusted operating margin expansion of up to 170 basis points, an increase from the prior outlook of up to 150 basis points.

Headwinds

  • Effects of global economic, political, market, health and social events or other conditions, including the effects and duration of, and actions taken in response to, the COVID-19 pandemic and the evolving situation involving Ukraine and Russia
  • Foreign currency exchange, inflation and rising interest rates
  • Difficulties, delays and higher than anticipated costs related to integrating the businesses of acquired companies, including with respect to implementing controls to prevent a material security breach of any internal systems or to successfully manage credit and fraud risks in business units
  • The ability to complete the proposed transaction with EVO on the proposed terms or on the proposed timeline, or at all, including risks and uncertainties related to securing the necessary regulatory approvals and the satisfaction of other closing conditions
  • 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 2022

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro