Global Payments (GPN) Tops Q4 EPS by 5c, Beats on Revenues; FY17 EPS/Revenue Guidance Above Consensus

Global Payments (NYSE: GPN) reported Q4 EPS of $1.15, $0.05 better than the analyst estimate of $1.10. Revenue for the quarter came in at $1.04 billion versus the consensus estimate of $912.74 million.

2017 Outlook

“We are very pleased with our performance in the third quarter and year-to-date period, again delivering results in excess of our targets for the business,” stated Cameron Bready, Senior Executive Vice President and Chief Financial Officer. “As a result of this strong performance and to reflect the impacts of the ACTIVE Network transaction, we are increasing our outlook for 2017. We now expect adjusted net revenue to range from $3.505 billion to $3.53 billion, or growth of 23% to 24% over 2016 and adjusted earnings per share to be in a range of $3.94 to $4.02, reflecting growth of 24% to 26% over 2016. We continue to expect adjusted operating margin to expand by as much as 120 basis points.”

Third Quarter 2017 Summary

• GAAP revenues were $1,038.9 million, compared to $951.9 million in the third quarter of 2016; diluted earnings per share were $0.71 compared to $0.36 in the prior year; and operating margin was 16.6% compared to 12.6% in the third quarter of 2016.
• Adjusted net revenue grew 12% to $930.4 million, compared to $828.4 million in the third quarter of 2016.
• Adjusted earnings per share grew 29% to $1.15, compared to $0.89 in the third quarter of 2016.
• Adjusted operating margin expanded 110 basis points to 31.3%.

GUIDANCE:

Global Payments sees FY2018 EPS of $3.94-$4.02, versus the consensus of $3.95. Global Payments sees FY2018 revenue of $3.505-3.53 billion, versus the consensus of $3.49 billion.

For earnings history and earnings-related data on Global Payments (GPN) click here.

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