Have you been eager to see how Global Payments Inc. (NYSE:GPN) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this company’s earnings release this morning.
An Earnings Beat
Global Payments came out with adjusted earnings per share of $1.13 per share, beating the Zacks Consensus Estimate of $1.09 per share and grew 33% year over year.
Global Payments Inc. Price and EPS Surprise
Revenue Miss
Global payments posted revenues of $722.7 million which missed the Zacks Consensus Estimate of $918 million and declined 10.1% year over year.
Key Stats to Note
Total operating expense of $638.8 million decreased 21.6% year over year led by 44.6% drop in cost of service.
Adjusted operating margin improved 140 basis points to 30.4%.
Long term debt as of Mar 31, 2018 was $4.2 billion down from $4.6 billion at 2017 end.
Guidance Raised
For 2018 the company expects adjusted earnings to a range of $5.00-$5.20 from $4.95 to $5.15 per share guided earlier.
Adjusted net revenues are estimated between $3.9 billion and 3.975 billion from $3.88 billion to $3.97 billion expected previously.
Adjusted operating margin for 2018 is projected to expand 120 basis points.
What Zacks Rank Says
Global Payments carries a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on this Global Payments earnings report!
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Global Payments Inc. (GPN): Free Stock Analysis Report
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