Global Payments Inc. Reaffirms Guidance and Boosts Buyback Plan

In a recent report, Global Payments Inc. announced its commitment to adjusted earnings and revenue guidance for 2024, affirming projections that align with analyst expectations. The company also approved a dividend and increased its share repurchase capacity, signaling confidence in financial health.

Date: 30-10-2024

AI Rating: 7

Global Payments Inc. (GPN) has reaffirmed its adjusted earnings guidance for fiscal 2024, projecting earnings in the range of $11.54 to $11.70 per share. This aligns closely with analysts' expectations of $11.57 per share, suggesting a positive outlook with no surprises.

In addition to earnings, the company has also provided its adjusted revenue guidance, predicting revenues between $9.17 billion and $9.30 billion. This is nearly in line with the analysts’ average expectation of $9.23 billion, which reflects stability and performance anticipation.

A further positive indicator is the declaration of a $0.25 per share dividend, payable on December 27, 2024. This can be interpreted as the company rewarding its shareholders, which generally instills investor confidence.

The company’s decision to increase its share repurchase authorization capacity to $2.5 billion and initiate a $600 million accelerated share repurchase plan indicates a strong belief in its own stock value and a commitment to returning capital to shareholders. These moves could also support stock prices in the near term by reducing the number of shares outstanding.

On another note, the definitive agreement to sell AdvancedMD to Francisco Partners, expected to close in the fourth quarter, may further streamline operations for Global Payments, allowing them to focus on core business areas.

Stocks: GPN