## Global Payments (GPN) Delivers Strong Q3, Acquires AdvancedMD, and Raises Full-Year Guidance
Global Payments Inc. (GPN) kicked off the week with a positive earnings report, exceeding analyst expectations for both revenue and earnings per share in the third quarter. The company’s strong performance comes despite ongoing economic uncertainty, demonstrating the resilience of its business model.
Key Highlights from Q3 2023:
*
Revenue:
$2.357 billion, surpassing estimates of $2.381 billion. This represents a 5% year-over-year increase.*
EPS:
$3.08, slightly below estimates of $3.12. Nonetheless, this marks a 12% climb from the previous year.*
Operating Margin:
Expanded by 40 basis points to 46.1%, showcasing operational efficiency.CEO Cameron Bready stated:
“We are pleased with our solid financial performance in the third quarter, which reflects strong execution despite ongoing macroeconomic uncertainty. These results highlight the resiliency and durability of our business as we move aggressively to position Global Payments for the next phase of its growth journey as a leader in payments.”Strategic Acquisition: AdvancedMD
Beyond the strong financial performance, Global Payments made a significant strategic move by signing a definitive agreement to acquire AdvancedMD from Francisco Partners. AdvancedMD specializes in providing practice management software and revenue cycle management solutions to the healthcare industry. This acquisition will bolster Global Payments’ presence in the healthcare sector and strengthen its payment processing capabilities. Global Payments will continue to power AdvancedMD’s payment acceptance capabilities as a long-term partner. The acquisition is expected to close in the fourth quarter.
Looking Ahead: Positive Outlook
Global Payments remains optimistic about the future, raising its full-year revenue guidance to a range of $9.17 billion to $9.3 billion, compared to analysts’ expectations of $9.23 billion. The company also expects full-year adjusted earnings to be between $11.54 and $11.70 per share, slightly exceeding analyst estimates of $11.57 per share.
Market Reaction
Investors responded positively to the strong earnings report and optimistic outlook. Global Payments shares were up 1.89% at $100.94 at the time of publication. This positive performance suggests investors are confident in the company’s ability to navigate the current economic environment and continue its growth trajectory.
