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Sep 30, 2022
Global Payments Q3 2022 Earnings Report
Delivered record results for the third quarter and reaffirmed constant currency outlook, excluding dispositions.
Key Takeaways
Global Payments Inc. announced record results for the third quarter of 2022, consistent with raised cycle guidance on a constant currency basis and excluding dispositions. The Merchant business delivered strong 11% adjusted net revenue growth (ex Russia) and the Issuer business delivered 6% adjusted net revenue growth, each on a foreign exchange neutral basis relative to the prior year period.
GAAP revenues were $2.29 billion, compared to $2.20 billion in the third quarter of 2021.
Adjusted net revenues increased 3% (6% constant currency) to $2.06 billion, compared to $2.00 billion in the third quarter of 2021.
Adjusted earnings per share increased 14% (18% constant currency) to $2.48, compared to $2.18 in the third quarter of 2021.
Adjusted operating margin expanded 240 basis points to 45.2%.
Revenue by Segment
Forward Guidance
For 2022, the company continues to expect constant currency adjusted net revenue growth of 10% to 11% over 2021, excluding dispositions. Further, the company continues to expect adjusted earnings per share on a constant currency basis to be in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021. The company also now expects adjusted operating margin expansion of up to 170 basis points, an increase from the prior outlook of up to 150 basis points.
Positive Outlook
- Continuing recovery from the pandemic worldwide
- Stable global macroeconomic environment throughout the remainder of this calendar year.
- Constant currency adjusted net revenue growth of 10% to 11% over 2021, excluding dispositions.
- Adjusted earnings per share on a constant currency basis to be in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021.
- Adjusted operating margin expansion of up to 170 basis points, an increase from the prior outlook of up to 150 basis points.
Challenges Ahead
- Effects of global economic, political, market, health and social events or other conditions, including the effects and duration of, and actions taken in response to, the COVID-19 pandemic and the evolving situation involving Ukraine and Russia
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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