Global Payments Boasts 'Best Q1 In 4 Years,' Clocks 5% Adjusted Net Revenue Growth

Global Payments Inc GPN reported first-quarter FY23 adjusted net revenue growth of 5% year-on-year (+7% Y/Y at constant currency) to $2.05 billion, beating the consensus of $2.01 billion. 

• Adjusted EPS of $2.40 (+15.9%) beat the consensus of $2.30.
• Merchant Solutions adjusted revenue stood at $1.46 billion (+8.9%)
• Issuer Solutions adjusted revenue was $490.22 million (+4.7%).
• The adjusted operating margin expanded 200 basis points to 43.1%.
• Global Payments held $2 billion in cash and equivalents.
• This was the company's "best first quarter in four years," according to Global Payments CEO Jeffrey Sloan. "Our core issuer business improved 340 basis points sequentially and delivered its highest rate of Y/Y growth in more than five years," he added.
• Sloan is stepping down as CEO and board member, effective June 1, 2023. COO Cameron Bready will succeed him.
• Dividend: Global Payments' approved a dividend of $0.25 per share payable June 30, 2023, to shareholders of record as of June 15, 2023.
• Outlook: Global Payments raised FY23 adjusted net revenue to $8.635 billion to $8.735 billion, compared with prior guidance of $8.575 billion to $8.675 billion. This reflects 7% to 8% growth over 2022. The consensus stands at $8.60 billion.
• Global Payments forecasts adjusted EPS of $10.32 to $10.44, compared to prior guidance of $10.25 - $10.37. The consensus stands at $10.31.

Price Action: GPN shares traded lower by 0.01% at $112.70 on the last check Monday.