- Global Payments (NYSE:GPN) shares climb 2.4% in premarket trading after it partners with Google (NASDAQ:GOOG) on a digital merchants solution, boosts its share repurchase authorization, and posts better-than-expected Q4 adjusted EPS.
- Under a multi-year partnership with Google, GPN will migrate its merchant acquiring technology to Google Cloud and will provide merchant acquiring services to Google to extend its global market reach. In addition, the two companies will launch a series of go-to-market and co-sell activities together.
- As an example of this co-innovation, Google’s public APIs (Google Workspace, Google My Business, Google Ads) and other technologies will be integrated with Global Payments’ software and payments ecosystem, delivering a spectrum of solutions that for merchants to run and grow their businesses.
- GPN also increased its share repurchase authorization to $1.5B and plans a $500M accelerated share repurchase.
- Q4 adjusted EPS of $1.80 beats the average analyst estimate of $1.76 and increased from $1.62 in the year-ago quarter.
- Q4 adjusted operating margin expended 320 basis points Y/Y to 41.5%.
- Q4 adjusted revenue of $1.75B, less than the consensus estimate of $1.76B, and down from $1.80B a year ago.
- Expects 2021 revenue of $7.50B-$7.60B compares with consensus of $7.58B
- Consistent with target provided on its Q3 call, GPN expects 2021 adjusted EPS of $7.75-$8.05; compares with consensus of $7.99.
- Conference call at 8:00 AM ET.
- Previously (Feb. 8): Global Payments EPS beats by $0.04, misses on revenue