Global Payments Inc (GPN) Reports 8.3% Increase in Q3 2023 Revenues
Global Payments Inc (NYSE:GPN) reports Q3 2023 GAAP revenues of $2.48 billion, an 8.3% increase from $2.29 billion in 2022.
Adjusted earnings per share increased by 11% to $2.75, compared to $2.48 in 2022.
Operating margin was 22.5% compared to 16.9% in the prior year.
The company raises its 2023 outlook and increases targeted synergies from EVO Acquisition.
Global Payments Inc (NYSE:GPN) announced its third-quarter earnings for 2023 on October 31, 2023. The company reported strong results, surpassing expectations despite the ongoing uncertain macroeconomic environment. GAAP revenues for the quarter were $2.48 billion, marking an 8.3% increase from $2.29 billion in the same period in 2022. Adjusted earnings per share also saw an 11% increase to $2.75, up from $2.48 in 2022.
Financial Highlights
Global Payments' GAAP diluted earnings per share were $1.39, a significant increase from $1.05 in the prior year. The company's operating margin also improved, standing at 22.5% compared to 16.9% in the prior year. Adjusted net revenues increased by 9% to $2.23 billion, compared to $2.06 billion in 2022. Adjusted operating margin expanded by 50 basis points to 45.7%.
Outlook for 2023
Josh Whipple, Senior Executive Vice President and Chief Financial Officer, expressed satisfaction with the company's solid financial performance for the third quarter and year-to-date period. The company expects adjusted net revenue to be in a range of $8.660 billion to $8.735 billion, reflecting growth of 7% to 8% over 2022. Adjusted operating margin is expected to expand by up to 120 basis points in 2023. Adjusted earnings per share are anticipated to be in a range of $10.39 to $10.45, reflecting growth of 11% to 12% over 2022, or roughly 17% excluding dispositions.
Capital Allocation and Dividend
Global Payments' Board of Directors approved a dividend of $0.25 per share payable on December 29, 2023, to shareholders of record as of December 15, 2023.
Financial Tables Summary
The company's consolidated statements of income show a net income of $376.6 million for Q3 2023, a 25.5% increase from $300.2 million in Q3 2022. The non-GAAP financial measures table shows an 8.5% increase in adjusted net revenue to $2.23 billion, compared to $2.06 billion in Q3 2022. The segment information table shows an 18% increase in Merchant Solutions revenues and a 7.4% increase in Issuer Solutions revenues.
Company Overview
Global Payments Inc (NYSE:GPN) is a leading payments technology company delivering innovative software and services globally. The company's technologies, services, and team member expertise allow it to provide a broad range of solutions that enable customers to operate their businesses more efficiently across various channels around the world.
Explore the complete 8-K earnings release (here) from Global Payments Inc for further details.
This article first appeared on GuruFocus.
