Global Payments Earnings Preview

Global Payments GPN is preparing to release its quarterly earnings on Wednesday, 2024-10-30. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Global Payments to report an earnings per share (EPS) of $3.13.

The market awaits Global Payments's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

Last quarter the company beat EPS by $0.02, which was followed by a 4.62% increase in the share price the next day.

Here's a look at Global Payments's past performance and the resulting price change:

Stock Performance

Shares of Global Payments were trading at $101.76 as of October 28. Over the last 52-week period, shares are down 8.25%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Take on Global Payments

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Global Payments.

A total of 20 analyst ratings have been received for Global Payments, with the consensus rating being Outperform. The average one-year price target stands at $134.3, suggesting a potential 31.98% upside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of Corpay, Toast and Jack Henry & Associates, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Corpay, with an average 1-year price target of $355.46, indicating a potential 249.31% upside.
• Toast received a Neutral consensus from analysts, with an average 1-year price target of $29.54, implying a potential 70.97% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Jack Henry & Associates, with an average 1-year price target of $189.6, implying a potential 86.32% upside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Corpay, Toast and Jack Henry & Associates are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Global Payments ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom compared to its peers.

All You Need to Know About Global Payments

Global Payments is a leading provider of payment processing and software solutions and focuses on serving small and midsize merchants. The company operates in 30 countries and generates about one fourth of its revenue from outside North America, primarily in Europe and Asia. In 2019, Global Payments merged with Total System Services in an all-stock deal that gave Total System Services shareholders 48% of the combined company's shares. The merger added issuer processing operations.

Breaking Down Global Payments's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Global Payments's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 4.74%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 14.59%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Global Payments's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.68%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Global Payments's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.73%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Global Payments's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.81.

To track all earnings releases for Global Payments visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.