2023-05-01 08:43:36 ET
Global Payments ( NYSE: GPN ) raised its guidance for full-year top and bottom lines, though slightly trailing consensus estimates, after the paytech firm's first-quarter results came in stronger than expected, mostly helped by growth in its Merchant business.
"Our merchant business proved highly resilient as we saw accelerated growth across a number of worldwide markets and ongoing stability despite incremental macroeconomic distractions," said CEO Jeff Sloan, who is stepping down starting June 1.
"And our core issuer business improved 340 basis points sequentially and delivered its highest rate of year-over-year growth in more than five years," he added.
For 2023, the company expects adjusted net revenue of $8.635B-$8.735B, vs. $8.60B consensus, an increase from 6%-7% in the previous target range. Adjusted EPS is expected to be $10.32-$10.44, vs. $10.31 consensus, up from 10%-11% in the prior view.
Q1 adjusted EPS of $2.40, exceeding the average analyst estimate of $2.31, slipped from $2.42 in Q4 2022 and rose from $2.07 in the year-ago quarter.
Adjusted net revenue of $2.05B (excluding the impact of dispositions and the acquisition of EVO Payments), surpassing the $2.01B consensus, climbed from $2.02B in the previous quarter and from $1.95B a year before.
Operating expenses were $2.24B, up from $1.85B in Q4 2022 and from $1.78B in the quarter ended March 31, 2022.
Q1 adjusted revenue by segment (vs. Q1 2022):
- Merchant Solutions of $1.46B drove up 8.9%.
- Issuer Solutions of $570.9M gained 4.7%.
- Consumer Solutions was $143.7M, dropping 23.6%.
Earlier, Global Payments declared a quarterly dividend of $0.25 per share.
More on Global Payments
- Global Payments Non-GAAP EPS of $2.40 beats by $0.09, revenue of $2.29B beats by $280M
- Global Payments: A Growth Company On Sale
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Global Payments lifts 2023 guidance as Merchant business drives Q1 beat