We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Global Payments (GPN) Up 6% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Global Payments (GPN - Free Report) . Shares have added about 6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Global Payments due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Global Payments Q1 Earnings Beat on Higher Revenues
Global Payments Inc. came up with first-quarter 2019 adjusted earnings of $1.34 per share, beating the Zacks Consensus Estimate by 3.1% and improving 18.6% year over year.
The reported quarter benefited from the company’s higher revenues, partly offset by increase in expenses.
Behind the Headlines
Adjusted net revenues plus network fees were $1.04 billion, up 13% year over year. The top line also marginally surpassed the Zacks Consensus Estimate by 0.8%, mainly driven by segmental performances.
Total operating expense of $683.5 million increased 7% year over year, led by higher cost of services, partly offset by lower selling, general and administration expenses.
Adjusted operating margin expanded 110 basis points to 31.5%.
Growth Across Segments
North America: Adjusted net revenues plus network fees of $786.4 million increased 16.2% year over year. Operating income of $262 million was up 23% year over year.
Europe: Adjusted net revenues plus network fees of $174 million grew 1.8% year over year. Operating income of $80 million rose 3% year over year.
Asia-Pacific: Adjusted net revenues plus network fees of $82.6 million climbed 7.8% year over year. Operating income of $30 million improved 15.8% year over year.
Dividend Update
Global Payments’ board of directors has approved a dividend of 1 cent per share, payable Jun 28, 2019 to shareholders of record as of Jun 14, 2019.
Balance Sheet Position
Total cash and cash equivalents as of Mar 31, 2019 were $1.3 billion, up 5.5% from Dec 31, 2018 level.
Long-term debt as of Mar 30, 2019 was $5.2 billion, up 3.1% from the level at 2018 end.
Net cash provided by operating activities for the first quarter of 2019 was $229.7 million, up 19% year over year.
2019 Outlook
For 2019, the company expects adjusted net revenues plus network fees in the band of $4.43-$4.49 billion. Adjusted EPS is projected in the range of $5.95 –$6.12, up from the previous estimate of $5.90-$6.10.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Global Payments has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Global Payments has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Global Payments (GPN) Up 6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Global Payments (GPN - Free Report) . Shares have added about 6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Global Payments due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Global Payments Q1 Earnings Beat on Higher Revenues
Global Payments Inc. came up with first-quarter 2019 adjusted earnings of $1.34 per share, beating the Zacks Consensus Estimate by 3.1% and improving 18.6% year over year.
The reported quarter benefited from the company’s higher revenues, partly offset by increase in expenses.
Behind the Headlines
Adjusted net revenues plus network fees were $1.04 billion, up 13% year over year. The top line also marginally surpassed the Zacks Consensus Estimate by 0.8%, mainly driven by segmental performances.
Total operating expense of $683.5 million increased 7% year over year, led by higher cost of services, partly offset by lower selling, general and administration expenses.
Adjusted operating margin expanded 110 basis points to 31.5%.
Growth Across Segments
North America: Adjusted net revenues plus network fees of $786.4 million increased 16.2% year over year. Operating income of $262 million was up 23% year over year.
Europe: Adjusted net revenues plus network fees of $174 million grew 1.8% year over year. Operating income of $80 million rose 3% year over year.
Asia-Pacific: Adjusted net revenues plus network fees of $82.6 million climbed 7.8% year over year. Operating income of $30 million improved 15.8% year over year.
Dividend Update
Global Payments’ board of directors has approved a dividend of 1 cent per share, payable Jun 28, 2019 to shareholders of record as of Jun 14, 2019.
Balance Sheet Position
Total cash and cash equivalents as of Mar 31, 2019 were $1.3 billion, up 5.5% from Dec 31, 2018 level.
Long-term debt as of Mar 30, 2019 was $5.2 billion, up 3.1% from the level at 2018 end.
Net cash provided by operating activities for the first quarter of 2019 was $229.7 million, up 19% year over year.
2019 Outlook
For 2019, the company expects adjusted net revenues plus network fees in the band of $4.43-$4.49 billion. Adjusted EPS is projected in the range of $5.95 –$6.12, up from the previous estimate of $5.90-$6.10.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Global Payments has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Global Payments has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.