Global Payments (GPN) Tops Q4 EPS by 1c, Miss on Revenues; Offers FY18 EPS Outlook Above Consensus, FY18 Revenue Guidance Mid-Point Below Consensus

Global Payments (NYSE: GPN) reported Q4 EPS of $1.07, $0.01 better than the analyst estimate of $1.06. Revenue for the quarter came in at $939 million versus the consensus estimate of $943.7 million.

2018 Outlook

“We could not be more pleased with our strong financial performance for 2017, and we remain excited about the momentum we have entering 2018,” stated Cameron Bready, Senior Executive Vice President and Chief Financial Officer. “As a result of this performance, for 2018 the company expects adjusted net revenue plus network fees to range from $3.88 billion to $3.97 billion, reflecting growth of 12% to 15% over comparable 2017 results and adjusted earnings per share to be in a range of $4.95 to $5.15, reflecting growth of 23% to 28% over 2017. Annual adjusted operating margin for 2018 is expected to expand by up to 110 basis points over comparable 2017 adjusted operating margin of 30.4%.”

Fourth Quarter 2017 Summary

• GAAP revenues were $1,054.3 million, compared to $950.2 million in the fourth quarter of 2016; diluted earnings per share were $1.51 compared to $0.16 in the prior year; and operating margin was 14.2% compared to 8.4% in the fourth quarter of 2016.
• Adjusted net revenue grew 15% to $939.0 million, compared to $819.7 million in the fourth quarter of 2016.
• Adjusted earnings per share grew 23% to $1.07, compared to $0.87 in the fourth quarter of 2016.
• Adjusted operating margin expanded 170 basis points to 30.3%.

GUIDANCE:

Global Payments sees FY2018 EPS of $4.95-$5.15, versus the consensus of $4.81. Global Payments sees FY2018 revenue of $3.88-3.97 billion, versus the consensus of $3.95 billion.

For earnings history and earnings-related data on Global Payments (GPN) click here.

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