/Global%20Payments%2C%20Inc_%20office%20in%20Canada-by%20JHVEPhoto%20via%20Shutterstock.jpg)
Global Payments Inc. (GPN), headquartered in Atlanta, Georgia, provides payment technology and software solutions for card, check, and digital-based payments. With a market cap of $27.6 billion, the company offers funds transfer, merchant banking, accounting, Internet, and other services. The leading payments technology company is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect GPN to report a profit of $2.83 per share on a diluted basis, up 11% from $2.55 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect GPN to report EPS of $11, up 12.5% from $9.78 in fiscal 2023. Its EPS is expected to rise 10.1% year over year to $12.11 in fiscal 2025.
GPN stock has underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares down 15.3% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) 22.1% gains over the same time frame.
GPN has been underperforming due to increased operating expenses and intensified competition in the payment market. Furthermore, rising expenses have impacted profitability, while competition from emerging firms threatens pricing dynamics.
On Oct. 30, GPN shares closed up more than 4% after reporting its Q3 results. Its adjusted EPS of $3.08 missed Wall Street expectations of $3.11. The company’s adjusted revenue was $2.36 billion, failing to meet Wall Street forecasts of $2.38 billion. GPN expects full-year adjusted EPS in the range of $11.54 to $11.70, and expects revenue to be between $9.2 billion and $9.3 billion.
Analysts’ consensus opinion on GPN stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 33 analysts covering the stock, 16 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” 12 give a “Hold,” and two recommend a “Strong Sell.” GPN’s average analyst price target is $132.41, indicating a potential upside of 22.1% from the current levels.
