NYSE$GPN

Global Payments Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Global Payments' performance was strong due to the TSYS merger and focus on software and omnichannel solutions.

Global Payments reported strong fourth quarter results, exceeding expectations for both the quarter and the full year. The merger with TSYS drove significant growth and the company is optimistic about the financial outlook for 2020.

  • GAAP revenues were $2.0 billion, compared to $881 million in the fourth quarter of 2018.
  • Adjusted net revenue grew 120% to $1.80 billion, compared to $819 million in the fourth quarter of 2018.
  • Adjusted earnings per share grew 22% to $1.62, compared to $1.33 in the fourth quarter of 2018.
  • Adjusted operating margin was 38.3%, substantially exceeding expectations.

Headline financials

Total Revenue

$1.8B

Previous: $1.04B+73.8%
EPS (adj)

$1.62

Previous: $1.33+21.8%
Adjusted Operating Margin

38.3%

No prior period
Net Income

$114M

Previous: $75.2M+52.0%
Operating Income

$196M

Previous: $167M+17.5%
Gross Profit

$949M

Previous: $567M+67.3%
Cash & Equivalents

$1.68B

Previous: $1.21B+38.6%
Total Assets

$44.5B

Previous: $13.2B+236.2%
Stock-Based Comp

$33.8M

Previous: $12.9M+162.6%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$1.8B

Q4 2019+73.8%vs Q4 2018
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Global Payments · $1.8B total across 2 segments · Q4 2019

  • Merchant Solutions
    $1.29B
  • Issuer Solutions
    $519M

Forward guidance

The company expects full year 2020 adjusted net revenue of $7.68 billion to $7.75 billion, representing growth of 67% to 69%, or 8% to 9% on a combined basis. Annual adjusted operating margin for 2020 is expected to expand by up to 250 basis points on a combined basis and by up to 75 basis points on a reported basis. We expect adjusted earnings per share growth of 20% to 23% over 2019.

Tailwinds

  • Full year 2020 adjusted net revenue of $7.68 billion to $7.75 billion, representing growth of 67% to 69%, or 8% to 9% on a combined basis.
  • Annual adjusted operating margin for 2020 is expected to expand by up to 250 basis points on a combined basis and by up to 75 basis points on a reported basis.
  • Adjusted earnings per share growth of 20% to 23% over 2019.
  • Expense synergies of at least $350 million within three years.
  • Annual run-rate revenue synergies of at least $125 million from the merger within that same period

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 Q4 2019

Historical avgQ4 2019

+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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