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Key Takeaways
- Global Payments beat second-quarter revenue expectations and narrowly missed on earnings when it reported Wednesday.
- Chief Executive Officer Cameron Bready said the company is making progress on streamlining its operations since selling its consumer-focused business, Netspend, in Q2 2023.
- The company reiterated its full-year adjusted net revenue guidance of 6% to 7% growth.
Global Payments (GPN) was among the S&P 500’s brightest stars Wednesday after a second-quarter revenue beat and a dose of optimism about the company’s streamlining efforts.
The fintech firm posted revenue of $2.57 billion, 5% higher year-over-year and slightly above the analyst consensus, per Visible Alpha. Diluted earnings per share (EPS) were $1.47, up 40% but short of expectations.
Firm To Continue Streamlining
Chief Executive Officer (CEO) Cameron Bready touted the company’s ongoing streamlining process after its $1 billion sale of the consumer portion of its Netspend business in last year’s second quarter.
“We delivered high single-digit adjusted net revenue growth, excluding the Netspend divestiture, and double-digit adjusted earnings per share growth in the second quarter,” Bready said. “We are also finalizing the review of our business that we began earlier this year and have identified meaningful opportunities to better align our organization to continue to drive sustainable growth.”
Global Payments Reiterates Revenue Growth Call
Looking ahead, Global Payments reiterated its estimates of full-year adjusted net revenue growth (between 6% and 7%) and adjusted EPS growth (between 11% and 12%). The company said it still expects its adjusted operating margin to increase by up to 50 basis points.
Shares of the company finished nearly 7% higher Wednesday at $99.46, but remain off more than 21% year-to-date.