Global Payments Inc. (NYSE: GPN) has reported its third-quarter 2024 results, revealing a mixed performance. The company's GAAP revenue for the third quarter of 2024 was $2.60 billion, marking a 5% increase from the same period in 2023. Adjusted net revenue also saw a 6% increase, reaching $2.36 billion. However, GAAP diluted earnings per share (EPS) experienced a decline of 11%, amounting to $1.24, while adjusted EPS saw a significant 12% increase, reaching $3.08.
The company's operating margin for the third quarter of 2024 was 18.3%, a decrease from 22.5% in the previous year. On the other hand, the adjusted operating margin expanded by 40 basis points to 46.1%. These figures indicate the company's efforts to streamline and simplify its business to unlock substantial value and support sustainable growth.
Looking ahead, Global Payments Inc. reaffirmed its outlook for 2024, with expectations of adjusted net revenue in the range of $9.17 billion to $9.30 billion, reflecting a growth of 6% to 7%. The company also anticipates adjusted earnings per share to be in the range of $11.54 to $11.70, signifying growth of 11% to 12% over 2023.
In terms of capital allocation, the company's board of directors approved a dividend of $0.25 per share payable on December 27, 2024, to shareholders of record as of December 13, 2024. Additionally, the board approved an increase in the company's share repurchase authorization capacity to $2.5 billion.
Lastly, Global Payments Inc. announced a definitive agreement to sell AdvancedMD to Francisco Partners. This transaction is expected to enhance value creation for shareholders, with the sale anticipated to close in the fourth quarter.
Following these announcements, the company's shares moved 1.8%, and are now trading at a price of $100.82. For more information, read the company's full 8-K submission here.
