Why Fintech Company Global Payments' Shares Are Gaining Today

Global Payments Inc GPN shares are trading higher by around 2% after the company reported Q3 FY23 results.

Adjusted net revenue rose 9% Y/Y to $2.232 billion, slightly beating the consensus of $2.226 billion. 

Merchant Solutions adjusted revenue stood at $1.73 billion (+19.2% Y/Y), and Issuer Solutions' adjusted revenue was $519.7 million (+6.3% Y/Y).

The adjusted operating margin expanded 50 basis points Y/Y to 45.7%.

Adjusted EPS of $2.75 beat the consensus of $2.71.

Dividend: Global Payments' approved a dividend of $0.25 per share payable on December 29, 2023, to shareholders of record on December 15, 2023. 

As of September 30, 2023, GPN held $2.11 billion in cash and equivalents.

FY23 Outlook: Global Payments raised the adjusted EPS outlook to $10.39 - $10.45 (from $10.35 - $10.44) vs. consensus of $10.38.

The company reiterated FY23 adjusted net revenue guidance at $8.660 billion - $8.735 billion vs. $8.68 billion street view.

The company is progressing with the integration of EVO Payments and now expects to deliver around $135 million in annual run-rate synergies (vs. at least $125 million projected earlier).

Price Action: GPN shares are up 1.56% at $105.42 on the last check Tuesday.