Global Payments Inc. (NYSE:GPN) shares are trading lower in the premarket session on Thursday.
The company reported fourth-quarter adjusted earnings per share of $2.95 (+12% constant currency), missing the street view of $2.96. Quarterly sales of $2.289 billion missed the analyst consensus estimate of $2.305 billion.
“2024 was a pivotal year for Global Payments as we launched our broad transformation agenda to set the future course for our business,” said CEO Cameron Bready.
Adjusted net revenues increased 5% (6.5% constant currency excluding dispositions), compared to $2.19 billion in the year-ago period.
Merchant Solutions rose 5.5% to $1.76 billion, and Issuer Solutions increased 2.2% to $542.099 million.
Also Read: Crocs Smashes Q4 Earnings Expectations Amid Accelerated China Growth; Stock Jumps
Operating income increased 67.1% year over year to $833.148 million, while adjusted operating income rose 5.7% to $1.03 billion. Adjusted operating margin expanded 40 basis points to 45.2%.
Bready continued, “We now expect to deliver more than $600 million of annual run-rate operating income benefits through our transformation by the first half of 2027.”
The company exited the quarter with cash and equivalents worth $2.538 billion.
Global Payments’ long-term debt in the quarter under review contracted to $15.164 billion, from $15.692 billion a year ago.
The company entered into $250 million accelerated share repurchase plan/
Outlook: Global Payments expects FY25 adjusted revenue growth of 5%-6%, compared to the $9.43 billion estimate.
The company also anticipates adjusted EPS growth of 10%-11%, compared to the $12.72 estimate.
“Annual adjusted operating margin is expected to expand 50 basis points excluding dispositions. We also expect to return approximately $2 billion to shareholders during the year,” said Josh Whipple, chief financial officer.
Price Action: Global Payments shares are trading lower by 0.51% ro $108.28 premarket at last check Thursday.
Read Next:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.