Global Payments Increases Sales but Misses Estimates on Earnings
Global Payments (NYS: GPN) reported earnings on Jan. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Global Payments beat slightly on revenues and missed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share improved significantly.
Margins dropped across the board.
Global Payments recorded revenue of $531 million. The 26 analysts polled by S&P Capital IQ anticipated net sales of $524 million. Sales were 20% higher than the prior-year quarter's $444 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.78. The 28 earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.78 for Q2 were 17% higher than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 65.0%, 20 basis points worse than the prior-year quarter. Operating margin was 18.2%, 50 basis points worse than the prior-year quarter. Net margin was 11.5%, 60 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $529 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $2.2 billion. The average EPS estimate is $3.22.
The stock has a four-star rating out of five) at Motley Fool CAPS, with 234 members out of 259 rating the stock outperform, and 25 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Global Payments a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Global Payments is outperform, with an average price target of $51.41.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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