Global Payments (NYSE:GPN) Issues FY 2022 Earnings Guidance

Global Payments (NYSE:GPNGet Rating) issued an update on its FY 2022 earnings guidance on Tuesday morning. The company provided earnings per share guidance of $9.53-$9.75 for the period, compared to the consensus earnings per share estimate of $9.51. The company issued revenue guidance of $8.48 billion-$8.55 billion, compared to the consensus revenue estimate of $8.41 billion.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. The Goldman Sachs Group assumed coverage on Global Payments in a report on Tuesday, May 17th. They set a neutral rating and a $151.00 target price on the stock. Barclays lowered their target price on Global Payments from $182.00 to $160.00 in a research report on Tuesday, May 3rd. Wells Fargo & Company lowered their price target on Global Payments from $185.00 to $148.00 and set an overweight rating on the stock in a research report on Thursday, July 14th. Deutsche Bank Aktiengesellschaft decreased their target price on Global Payments from $222.00 to $188.00 and set a buy rating for the company in a research report on Tuesday. Finally, Raymond James reduced their price objective on Global Payments from $190.00 to $174.00 and set an outperform rating for the company in a research report on Tuesday. Six analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company. Based on data from MarketBeat, Global Payments has a consensus rating of Moderate Buy and an average price target of $175.03.

Global Payments Stock Performance

NYSE:GPN traded down $0.60 during trading hours on Friday, reaching $128.00. The stock had a trading volume of 1,162,815 shares, compared to its average volume of 1,992,627. Global Payments has a 12-month low of $105.52 and a 12-month high of $179.27. The stock has a 50 day simple moving average of $118.40 and a 200 day simple moving average of $129.16. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.06 and a current ratio of 0.87. The stock has a market cap of $35.48 billion, a P/E ratio of 711.15, a price-to-earnings-growth ratio of 0.88 and a beta of 1.04.

Global Payments (NYSE:GPNGet Rating) last posted its quarterly earnings data on Monday, August 1st. The business services provider reported $2.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.34 by $0.02. The company had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.09 billion. Global Payments had a return on equity of 9.24% and a net margin of 0.87%. The firm’s quarterly revenue was up 6.7% on a year-over-year basis. During the same quarter last year, the company earned $1.92 earnings per share. On average, research analysts forecast that Global Payments will post 9.09 EPS for the current fiscal year.

Global Payments Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Friday, September 16th will be issued a $0.25 dividend. The ex-dividend date is Thursday, September 15th. This represents a $1.00 annualized dividend and a dividend yield of 0.78%. Global Payments’s dividend payout ratio is currently 555.59%.

Global Payments declared that its board has approved a stock buyback program on Monday, August 1st that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 4.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Global Payments

In other news, EVP David Lawrence Green sold 16,252 shares of Global Payments stock in a transaction dated Friday, June 3rd. The stock was sold at an average price of $130.10, for a total value of $2,114,385.20. Following the transaction, the executive vice president now owns 97,818 shares in the company, valued at $12,726,121.80. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 1.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Charles Schwab Investment Management Inc. increased its holdings in Global Payments by 1.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,433,239 shares of the business services provider’s stock valued at $196,125,000 after purchasing an additional 17,882 shares during the period. Dimensional Fund Advisors LP increased its holdings in Global Payments by 3.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,288,788 shares of the business services provider’s stock valued at $176,366,000 after purchasing an additional 48,605 shares during the period. Goldman Sachs Group Inc. increased its holdings in Global Payments by 1.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,093,452 shares of the business services provider’s stock valued at $149,629,000 after purchasing an additional 16,301 shares during the period. Earnest Partners LLC increased its holdings in Global Payments by 2.4% during the 1st quarter. Earnest Partners LLC now owns 332,173 shares of the business services provider’s stock valued at $45,455,000 after purchasing an additional 7,928 shares during the period. Finally, The Manufacturers Life Insurance Company increased its holdings in Global Payments by 0.3% during the 1st quarter. The Manufacturers Life Insurance Company now owns 221,617 shares of the business services provider’s stock valued at $30,327,000 after purchasing an additional 698 shares during the period. Hedge funds and other institutional investors own 84.53% of the company’s stock.

Global Payments Company Profile

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Global Payments Inc provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through three segments: Merchant Solutions, Issuer Solutions, and Business and Consumer Solutions. The Merchant Solutions segment offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and on-line reporting services.

Further Reading

Earnings History and Estimates for Global Payments (NYSE:GPN)

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