What happened
Investments in fintech company Global Payments(NYSE: GPN) paid off handsomely on Tuesday. Following the release of its latest set of quarterly results, Global Payments stock zoomed to close nearly 10% higher. That easily beat the 0.3% decline of the slumping S&P 500 index on the day.
So what
For its second quarter, Global Payments' revenue came in at $2.45 billion; this was nearly 8% above the figure of the same quarter last year. Non-GAAP (adjusted) earnings also headed north, rising by slightly over 4% to hit $685 million ($2.62 per share).
Both headline numbers beat the average analyst estimates, albeit not massively. The consensus prognosticator estimate for revenue was $2.19 billion, and those pundits were expecting Global Payments to net $2.59 per share in adjusted net income.
In its earnings release, Global Payments attributed its performance to a four-pillar strategy. Under this, the company has focused on software primacy, omnichannel products, relatively high-growth markets, and business-to-business (B2B) payments.
The company also concurrently announced its latest quarterly dividend. This is to be $0.25 per share, and it matches the preceding eight payouts. The new distribution is to be paid on Sept. 29 to investors of record as of Sept. 15. It currently yields 0.9%.
Now what
With a good quarter at its back, Global Payments raised guidance for full-year 2023. It now feels it will book $8.66 billion to almost $8.74 billion on the top line, which would mean at least 7% growth over the 2022 tally if realized. Adjusted earnings should land at $10.35 to $10.44, per the company's projections; the lower end of the range is 11% over last year's result.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
