Global Payments Clocks 2% Adj Revenue Growth In Q4; Updates On Acquisitions & Divestments

Global Payments Inc GPN reported fourth-quarter FY22 adjusted net revenue growth of 2% year-on-year (4% Y/Y in constant currency) to $2.02 billion, beating the consensus of $2.01 billion.
The adjusted operating margin expanded 240 basis points to 44.4%.
Adjusted EPS of $2.42 beat the consensus of $2.41.
Global Payments held $1.998 billion in cash and equivalents.
CFO Josh Whipple said, "Our 2023 outlook reflects the closings of the acquisition of EVO Payments, the divestiture of Netspend's consumer business, and the sale of Gaming Solutions in each case by the end of the first quarter."
Whipple concluded, "We presume a stable worldwide macroeconomic backdrop throughout calendar year 2023."
GPN entered into a definitive agreement to sell its Gaming Solutions business to Parthenon Capital Partners for $415 million.
"Through stock repurchases and dividends, we returned over $3 billion in 2022. And we welcomed Silver Lake, the global leader in technology investing, to our base of investors," said CEO Jeff Sloan.
Global Payments' dividend of $0.25 per share is payable on March 31, 2023, to shareholders of record as of March 17, 2023. The company's Board has also reauthorized up to $1.5 billion of share repurchase capacity.
Outlook: Global Payments expects FY23 adjusted net revenue of $8.575 billion - $8.675 billion, above the consensus of $8.570 billion.
Global Payments forecasts adjusted EPS of $10.25 - $10.37 versus the consensus of $10.37.
Price Action: GPN shares traded higher by 4.15% at $116.27 on the last check Friday.

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