Global Payments Beats Earnings Forecasts but Misses Revenue Estimates

  • Stock Market News
Global Payments Beats Earnings Forecasts but Misses Revenue Estimates
Credit: © Reuters.

By Sam Boughedda -- Shares of Global Payments Inc (NYSE: GPN ) are down over 11% Monday after the company reported earnings, missing expectations.

The payments technology provider reported adjusted earnings of $2.07 per share on revenue of $1.95 billion. Analysts polled by expected earnings per share of $2.04 on revenue of $1.96 billion.

Revenues increased 8% compared to $1.81 billion in the first quarter of 2021, while earnings per share increased 14% compared to $1.82 the previous year, despite foreign-exchange volatility due to the Russia-Ukraine war.

The company said it has made progress with the strategic review of the Netspend consumer business.

Meanwhile, Global Payments revealed CaixaBank has now signed a letter of intent memorializing Global Payments as its technology partner for its card-issuing businesses.

CaixaBank (OTC: CAIXY ) is the company's largest new customer LOI for its Issuer Solutions business since 2013 and would more than double its implementation pipeline.

For 2022, the company continues to see adjusted net revenue between $8.42 billion to $8.50 billion, reflecting growth of 9% to 10%, with adjusted earnings per share forecast to be between $9.45 to $9.67, representing an increase of 16% to 19%.

It raised expectations for its 2022 annual adjusted operating margin, which it now expects will expand by up to 125 basis points (up to 175 basis points excluding acquisitions), rising from the prior outlook of up to 100 basis points.

However, they cautioned that the outlook presumes continuing recovery from the pandemic worldwide and a stable global macroeconomic environment throughout the year.

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