NYSE$GPN

Global Payments Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered strong results, highlighting consistent execution across market cycles.

Global Payments reported strong Q4 and full year 2022 results, with adjusted net revenue increasing by 2% (4% constant currency) to $2.02 billion and adjusted earnings per share increasing by 14% (17% constant currency) to $2.42.

  • Merchant business delivered 9% adjusted net revenue growth (excluding dispositions) on a foreign exchange neutral (FXN) basis.
  • Issuer business delivered 5% adjusted net revenue growth on a FXN basis, with core Issuer business accelerating sequentially.
  • Returned over $3 billion to shareholders through stock repurchases and dividends in 2022.
  • Expects to complete acquisition of EVO Payments and Netspend Consumer Divestiture on track to close by end of First Quarter.

Headline financials

Total Revenue

$2.02B

Previous: $1.99B+1.9%
EPS (adj)

$2.42

Previous: $2.13+13.6%
Adjusted Operating Margin

44.4%

Previous: 42.0%+5.7%
Net Income

$259M

Previous: $217M+19.1%
Operating Income

$408M

Previous: $321M+27.0%
Gross Profit

$1.33B

Previous: $1.23B+8.1%
Cash & Equivalents

$2B

Previous: $1.98B+0.9%
Total Assets

$44.8B

Previous: $45.3B-1.0%
Stock-Based Comp

$40.8M

Previous: $34.7M+17.6%

Revenue & EPS history

Global Payments · Revenue · Quarterly

$2.02B

Q4 2022+1.9%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Global Payments · $2.14B total across 2 segments · Q4 2022

  • Merchant Solutions
    $1.55B+5.3%
  • Issuer Solutions
    $583M+8.4%

Forward guidance

The company expects adjusted net revenue to be in a range of $8.575 billion to $8.675 billion, reflecting growth of 6% to 7% over 2022, and adjusted earnings per share to be in a range of $10.25 to $10.37, reflecting growth of 10% to 11% over 2022 (15% to 16% excluding dispositions).

Tailwinds

  • Adjusted net revenue expected to grow 6% to 7% over 2022.
  • Adjusted earnings per share expected to grow 10% to 11% over 2022 (15% to 16% excluding dispositions).
  • Annual adjusted operating margin for 2023 is expected to expand by up to 120 basis points.
  • Outlook reflects the closings of the acquisition of EVO Payments.
  • Outlook reflects the divestiture of Netspend’s consumer business and the sale of Gaming Solutions.

Headwinds

  • Assumes a stable worldwide macroeconomic backdrop throughout calendar year 2023.
  • Incremental expenses related to contractual obligations for assets held for sale.
  • Potential delays and higher than anticipated costs related to integrating the businesses of acquired companies.
  • Effect of a security breach or operational failure on our business.
  • Failing to comply with the applicable requirements of Visa, Mastercard or other payment networks or card schemes or changes in those requirements.

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 2022

Historical avgQ4 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%

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