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Mar 31, 2021
Global Payments Q1 2021 Earnings Report
Returned to growth and achieved sequential expansion, driven by strategic investments and consistent execution.
Key Takeaways
Global Payments reported a return to growth in Q1 2021, with adjusted net revenues increasing by 5% to $1.81 billion and adjusted earnings per share increasing by 15% to $1.82. The company also raised its full-year 2021 outlook for adjusted net revenue and adjusted earnings per share.
Returned to growth in the first quarter of 2021.
Adjusted earnings per share increased 15% to $1.82.
Adjusted operating margin expanded 160 basis points.
Raising expectations for full year 2021 adjusted net revenue and adjusted earnings per share.
Global Payments
Global Payments
Global Payments Revenue by Segment
Revenue by Segment
Merchant Solutions Revenue
CapyFin.comIssuer Solutions Revenue
CapyFin.com Forward Guidance
The company is raising its expectations for full year 2021 adjusted net revenue to be in the range of $7.55 billion to $7.625 billion, reflecting growth of 12% to 13%, and is increasing its adjusted earnings per share estimate to be in a range of $7.87 to $8.07, or growth of 23% to 26% over 2020.
Positive Outlook
- Adjusted net revenue growth of 12% to 13%.
- Adjusted earnings per share growth of 23% to 26%.
- Remain on a path toward recovery worldwide over the balance of the year.
- Expect the Zego and Worldline Austrian business acquisitions to close by the end of the second quarter and in the second half of 2021, respectively.
- Integration activities remain on track to realize targeted synergies within three years from the close of the TSYS merger.
Challenges Ahead
- Outlook does not include any impact from the transactions announced today.
- Difficult comparison given the late March onset of COVID-19 last year.
- Integration of the businesses of Global Payments and TSYS may face difficulties, delays and higher than anticipated costs.
- Failure to fully realize anticipated cost savings and other anticipated benefits of the Merger when expected or at all.
- Business disruptions from the Merger integration that may harm our business, including current plans and operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income