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Valued at a market cap of $26.2 billion, Global Payments Inc. (GPN) provides payment technology and software solutions for card, check, and digital-based payments and also offers payroll, HR, and employee payment solutions. The Atlanta, Georgia-based company distinguishes itself by providing tailored software and expertise for various industries and is expected to announce its fiscal Q3 earnings results on Tuesday, Oct. 29.
Ahead of this event, analysts expect the fintech company to report a profit of $2.98 per share, up 8.4% from $2.75 per share in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. Its adjusted earnings per share for the last quarter outpaced the consensus estimates by 1.5%. The outperformance can be attributed to growth in transaction volumes and a rise in traditional accounts in the issuer solutions segment coupled with 40 basis points (bps) improvement in the adjusted operating margin.
For fiscal 2024, analysts expect GPN to report an EPS of $11.07, up 13.2% from $9.78 in fiscal 2023. Moreover, EPS is expected to increase 10.9% year-over-year to $12.28 in fiscal 2025.
Shares of GPN have declined 19% on a YTD basis, significantly lagging behind both the S&P 500 Index's ($SPX) 21.9% surge and the Technology Select Sector SPDR Fund’s (XLK) 18.8% return over the same period.
On Aug. 7, shares of GPN jumped 6.9% following its Q2 earnings release as, along with its adjusted EPS, its revenue of $2.57 billion in the period, which increased 5% from a year ago, surpassed the Wall Street estimates of $2.31 billion. Its adjusted EPS also climbed 12% on a yearly basis to $2.93.
Analysts' consensus view on Global Payments stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 35 analysts covering the stock, 20 recommend a "Strong Buy," three suggest "Moderate Buy," 10 indicate “Hold,” and two recommend a “Strong Sell” rating. This configuration is less bullish than three months ago, with 24 analysts suggesting a "Strong Buy."
The average analyst price target for GPN is $134.21, indicating a 30.5% potential upside from the current levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
