Global Payments Stock Gains On Clocking 28% Q2 Revenue Growth, Hikes Share Buyback To $1.5B, Raises Guidance

Global Payments Inc GPN reported second-quarter FY21 net revenue growth of 27.8% year-on-year to $2.14 billion, beating the analyst consensus of $1.85 billion. Adjusted net revenues increased 28% Y/Y to $1.94 billion.
Revenue from Merchant Solutions' revenue 42.5% Y/Y to $1.4 billion, Issuer Solutions expanded 7.6% Y/Y to $505.9 million, and Business and Consumer Solutions grew 4.9% Y/Y to $227.4 million.
Adjusted operating margin expanded 480 basis points to 41.8%
Adjusted EPS of $2.04 beat the analyst consensus of $1.89.
The integrated business grew 53%, and business acquisitions globally generated 46% growth. It also posted strong growth in its vertical markets businesses.
The board approved an increase to its share repurchase authorization to $1.5 billion. It ratified a dividend of $0.25 per share payable on Sep. 24 to shareholders of record on Sep. 10.
Outlook: The company raised its adjusted net revenue guidance from $7.55 billion - $7.625 billion to $7.70 billion - $7.73 billion. The revenue consensus is $7.61 billion.
It raised the adjusted EPS outlook from $7.87 - $8.07 to $8.07 - $8.20, above the analyst consensus of $8.
Price action: GPN shares traded higher by 1.18% at $195.70 in the premarket session on the last check Monday.

Earnings Calendar