Global Payments Increases Sales but Misses Estimates on Earnings
Global Payments (NYS: GPN) reported earnings on April 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Global Payments met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Global Payments booked revenue of $533.5 million. The 25 analysts polled by S&P Capital IQ anticipated a top line of $529.4 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $456.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.73 for Q3 were 24% higher than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 63.6%, 50 basis points better than the prior-year quarter. Operating margin was 17.3%, 20 basis points better than the prior-year quarter. Net margin was 10.9%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $579.4 million. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $2.19 billion. The average EPS estimate is $3.20.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 239 members out of 273 rating the stock outperform, and 34 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Global Payments a green thumbs-up, and nine 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 $52.52.
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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.