Global Payments ( NYSE: GPN ) issued solid guidance for full-year 2023 to reflect the coming closings of its EVO Payments acquisition, the divestiture of Netspend's consumer business and the $415M sale of its Gaming Solutions segment to Parthenon Capital Partners, it said Friday. That comes after the company's Q4 profit and sales each matched Wall Street expectations and climbed from a year ago.
GPN climbed as much as 1.9% in premarket trading.
The paytech firm called for adjusted net revenue to be $8.575B-$8.675B in 2023, up from the $8.47B average analyst estimate, reflecting 6%-7% growth over 2022.
Full-year adjusted EPS is expected to be $10.25-$10.37, vs. $10.38 consensus, reflecting growth of 10%-11% over the prior year (15%-16% excluding dispositions). And adjusted operating margin for 2023 is anticipated to expand by up to 120 basis points.
Q4 2022 adjusted EPS of $2.42, matching the average Street estimate, slipped from $2.48 in Q3 and rose from $2.13 in the year-ago quarter.
Adjusted net revenue of $2.02B, also in line with consensus, slid from $2.29B in the prior quarter and edged up from $1.98B a year before.
Operating expenses totaled $1.85B versus $1.9B in Q3 and $1.87B in the year-earlier period.
Operating income was $407.63M in Q4, up from $386.4M in Q3 and from $320.98M in Q4 2021.
Q4 adjusted sales by segment (vs. Q4 2021):
- Merchant Solutions of $1.41B accelerated 5.2%.
- Issuer Solutions of $501.33M climbed 1.3%.
- Consumer Solutions of $136.49M dropped 22.0%.
Earlier, Global Payments declared a quarterly dividend of $0.25 per share.
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Global Payments initiates upbeat year guidance, sells Gaming Solutions unit for $415M