NYSE$GPN

Global Payments Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Delivered record fourth quarter and full year results and set growth targets for 2022.

Global Payments reported strong Q4 2021 results, with adjusted net revenues increasing by 13.3% to $1.98 billion and adjusted earnings per share increasing by 18.3% to $2.13. The company also set growth targets for 2022 and commenced a strategic review of the Netspend consumer business.

  • GAAP revenues were $2.19 billion, compared to $1.93 billion in the fourth quarter of 2020.
  • Adjusted net revenues increased 13.3% to $1.98 billion, compared to $1.75 billion in the fourth quarter of 2020.
  • Adjusted earnings per share increased 18.3% to $2.13, compared to $1.80 in the fourth quarter of 2020.
  • Adjusted operating margin of 42.0% expanded 50.0 basis points.

Headline financials

Total Revenue

$1.99B

Previous: $1.75B+13.3%
EPS (adj)

$2.13

Previous: $1.80+18.3%
Adjusted Operating Margin

42.0%

Previous: 41.5%+1.2%
Net Income

$217M

Previous: $185M+17.5%
Operating Income

$321M

Previous: $252M+27.4%
Gross Profit

$1.23B

Previous: $1.01B+21.6%
Cash & Equivalents

$1.98B

Previous: $1.95B+1.7%
Total Assets

$45.3B

Previous: $44.2B+2.4%
Stock-Based Comp

$34.7M

Previous: $43.7M-20.7%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$1.99B

Q4 2021+13.3%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Global Payments · $2.01B total across 2 segments · Q4 2021

  • Merchant Solutions
    $1.48B+20.2%
  • Issuer Solutions
    $538M+3.3%

Forward guidance

The company expects adjusted net revenue to be in a range of $8.42 billion to $8.50 billion, reflecting growth of 9% to 10% over 2021, and adjusted earnings per share to be in a range of $9.45 to $9.67, reflecting growth of 16% to 19% over 2021. Annual adjusted operating margin for 2022 is expected to expand by up to 100 basis points.

Tailwinds

  • Adjusted net revenue to be in a range of $8.42 billion to $8.50 billion, reflecting growth of 9% to 10% over 2021
  • Adjusted earnings per share to be in a range of $9.45 to $9.67, reflecting growth of 16% to 19% over 2021
  • Annual adjusted operating margin for 2022 is expected to expand by up to 100 basis points
  • Expects to finalize contract negotiations with Caixabank
  • Partnership with Virgin Money

Headwinds

  • Presumes continued recovery from the pandemic worldwide throughout 2022
  • Unexpected impact of COVID-19 variants
  • Difficulties, delays and higher than anticipated costs related to integrating the businesses of Global Payments and TSYS
  • The impact of a security breach or operational failure on the Company’s business
  • 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 Q4 2021

Historical avgQ4 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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