Global Payments Inc. Set to Reveal Q4 Earnings Amid Mixed Performance
Global Payments Inc. (GPN), based in Atlanta, Georgia, specializes in payment technology and software for various payment types including cards, checks, and digital methods. With a market capitalization of $27.6 billion, the company provides a range of services including funds transfer, merchant banking, and accounting. GPN is scheduled to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, February 12.
Expected Earnings Report: Growth Anticipated
Analysts predict that GPN will report a profit of $2.83 per share on a diluted basis, which marks an 11% increase from $2.55 per share reported in the same quarter last year. Notably, GPN has outperformed earnings estimates in three of the past four quarters, with one instance of missing projections.
Annual Growth Projections Look Promising
For the full year, expectations are for GPN to achieve earnings per share (EPS) of $11, reflecting a 12.5% jump from $9.78 in fiscal 2023. Looking ahead, EPS is projected to grow by 10.1% to $12.11 in fiscal 2025.
Stock Performance: Under Pressure
Over the last 52 weeks, GPN shares have dropped 15.3%, lagging behind the S&P 500, which has gained 26.5%. The stock also underperformed the Technology Select Sector SPDR Fund (XLK), which saw a 22.1% increase during the same period.
Challenges Ahead: Rising Costs and Competition
GPN’s struggles can be attributed to growing operating expenses and tough competition in the payments sector. As costs rise, profitability has been squeezed, and new rivals in the market threaten existing pricing strategies.
Recent Quarterly Results: A Mixed Bag
On October 30, GPN’s stock rose over 4% after the company released its Q3 results. Although the adjusted EPS of $3.08 was slightly below Wall Street’s expectation of $3.11, adjusted revenue reached $2.36 billion, which was also short of the predicted $2.38 billion. Looking forward, GPN estimates its full-year adjusted EPS will fall between $11.54 and $11.70, while revenue is expected to be in the $9.2 billion to $9.3 billion range.
Analyst Opinions: Cautiously Optimistic
The consensus on GPN stock leans towards moderate optimism, with an overall “Moderate Buy” rating. Out of 33 analysts covering the stock, 16 have issued a “Strong Buy” recommendation, three rated it as “Moderate Buy,” 12 advised a “Hold,” and two suggested a “Strong Sell.” The average analyst price target stands at $132.41, indicating a potential upside of 22.1% from current pricing.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.
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