GPN Earnings Prediction
The chart below shows how GPN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GPN sees a +1.89% change in stock price 10 days leading up to the earnings, and a +0.97% change 10 days following the report. On the earnings day itself, the stock moves by -0.21%. This data can give you a slight idea of what to expect for the next quarter's release.
GPN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.52B
3.35%
-3.31%
Gross Margin
62.14%
0.05%
-2.30%
Operating Margin
24.87%
1.93%
11.57%
Net Margin
23.78%
55.42%
85.49%
EPS
2.25
63.04%
81.45%
No Data Available
GPN Earnings Analysis
Global Payments Inc Corporation (GPN.N) Earnings Conference Call
Positive
Q4 2024 Growth Performance: Global Payments achieved 6.5% constant currency growth in Q4 2024, with over 7% growth in the Merchant business and 3% in the Issuer business, indicating strong operational performance.
Financial Performance Highlights: For the full year, the company delivered 6% adjusted net revenue growth, record adjusted operating margins, and double-digit adjusted earnings per share growth, showcasing overall financial strength despite FX headwinds.
Merchant Segment Growth: The Merchant segment's POS and software business saw high teens growth in new locations, with a 25% increase in annual recurring revenue from new customers, reflecting strong demand for their solutions.
Partnership Expansion Strategy: Global Payments expanded partnerships with major clients, including multinational QSRs and entertainment companies, enhancing their service offerings and market reach.
Education Sector Growth: In the education sector, new sales with university customers increased over 30%, and the company added 113 new K-12 school districts, demonstrating growth in this vertical.
International Partnership Growth: The company signed 165 new international ISV partnerships, a 34% increase, indicating a strong push towards integrated payments and global expansion.
Record Traditional Accounts: Issuer Solutions saw record traditional accounts on file of 885 million, with a strong conversion pipeline extending into 2026, reflecting robust operational execution.
Strong Cash Generation: The company generated approximately $3 billion of adjusted free cash flow and returned $1.8 billion to shareholders, highlighting strong cash generation and commitment to shareholder returns.
Operating Income Growth Target: Global Payments is on track to achieve $600 million in annual run rate operating income benefits from their transformation initiatives by 2027, an increase from previous estimates, indicating effective strategic execution.
Earnings Per Share Growth: The company expects adjusted earnings per share growth of 10% to 11% for 2025, consistent with their medium-term outlook, reflecting confidence in future performance.
Negative
Earnings Miss Reported: Global Payments Inc. missed earnings expectations with reported EPS of $2.95, falling short of the expected $2.98.
Currency Fluctuation Impact: The company faced a headwind from currency fluctuations, which impacted adjusted net revenue growth by over 300 basis points due to recent strengthening of the U.S. dollar.
Adjusted Revenue Growth Challenges: Despite a 6% adjusted net revenue growth for the full year, the growth was slightly less than anticipated, indicating potential challenges in achieving higher growth rates.
Issuer Solutions Revenue Growth: The Issuer Solutions segment showed only 3% growth in adjusted net revenue for the fourth quarter, which is relatively low compared to other segments and reflects cautious spending by corporates.
Hiring Trends Impact Paycard Growth: The company noted softer hiring trends in the market, which negatively impacted growth in the Paycard business by nearly 1 point in the quarter.
Operating Margin Decline: The adjusted operating margin for Issuer Solutions declined modestly compared to the prior year period, indicating potential pressure on profitability in that segment.
Market Exit Strategy: The company is in the process of exiting several small markets in Asia Pacific, which may indicate challenges in those regions and a need to refocus efforts elsewhere.
GPN FAQs
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GPN Earning Call Sentiment
Global Payments Inc. (NYSE:GPN) Q4 2024 Earnings Call Transcript
GPN.N
-3.94%Positive
The earnings call indicates strong financial performance with solid revenue and EPS growth, improved margins, and robust free cash flow. The strategic initiatives, including POS consolidation and international expansion, suggest future growth potential. The shareholder return plan, including significant share repurchases, is a positive catalyst. Despite some uncertainties in the macro environment and ongoing changes, management's high confidence in their outlook and transformation initiatives supports a positive sentiment. The Q&A section reveals optimism about future growth and operational efficiencies, further enhancing the positive outlook.
