Global Payments Inc · Q3 2023 earnings

Briefing

Delivered strong third quarter performance, raised 2023 outlook, and increased targeted synergies from EVO acquisition.

Global Payments Inc. reported strong third quarter results ahead of expectations, with adjusted net revenues increasing 9% to $2.23 billion and adjusted earnings per share increasing 11% to $2.75. The company has made outstanding progress with the integration of EVO Payments and now expects to deliver approximately $135 million in annual run-rate synergies.

• GAAP revenues were $2.48 billion, compared to $2.29 billion in 2022; diluted earnings per share were $1.39 compared to $1.05 in the prior year; and operating margin was 22.5% compared to 16.9% in the prior year.
• Adjusted net revenues increased 9% to $2.23 billion, compared to $2.06 billion in 2022.
• Adjusted earnings per share increased 11% to $2.75, compared to $2.48 in 2022.
• Adjusted operating margin expanded 50 basis points to 45.7%.

Headline financials

Revenue & EPS history

The company continues to expect adjusted net revenue to be in a range of $8.660 billion to $8.735 billion, reflecting growth of 7% to 8% over 2022, and for adjusted operating margin to expand by up to 120 basis points in 2023. We now anticipate adjusted earnings per share to be in a range of $10.39 to $10.45, reflecting growth of 11% to 12% over 2022, or roughly 17% excluding dispositions.