Global Payments Inc: Q4 2024 Earnings Call Highlights

Global Payments Inc. (NYSE: GPN) recently announced its fourth quarter and full year 2024 results, showcasing a strong financial performance and a strategic focus on long-term growth. The company's earnings call highlighted several key aspects, including significant earnings growth, revenue expansion, and an increased expected operating income benefit from its operational transformation.



Earnings Growth and Revenue Expansion

In the fourth quarter of 2024, Global Payments reported a 63% increase in GAAP diluted earnings per share (EPS) to $2.25 and a 12% increase in adjusted EPS (constant currency) to $2.95. This substantial improvement in EPS reflects the company's successful execution of its transformation agenda, launched in 2024 to set the future course for the business. The transformation aimed to unlock substantial value and position the business for long-term sustainable growth and success.

The company also experienced a 3% increase in GAAP revenue to $2.52 billion and a 6.5% increase in adjusted net revenue (constant currency, ex-dispositions) to $2.29 billion. This growth can be attributed to several factors, including the successful transformation and strategic focus, growth in both Merchant and Issuer businesses, and the expansion of the adjusted operating margin.



Operational Transformation and Expected Benefits

Global Payments' operational transformation, launched in 2024, has significantly impacted the company's long-term financial projections and shareholder value. The expected operating income benefit from this transformation has been increased to $600 million, reflecting the company's progress in unlocking substantial value and positioning the business for long-term sustainable growth and success.

By the first half of 2027, the transformation is expected to deliver more than $600 million of annual run-rate operating income benefits. This transformation agenda aims to set the future course for the business by reorienting to a unified operating model globally, addressing the company's complexity, enhancing its agility, and better positioning it to execute against its refreshed strategy.

2025 Outlook and Capital Allocation

Looking ahead to 2025, Global Payments expects constant currency adjusted net revenue growth in a range of 5% to 6% (excluding dispositions) and constant currency adjusted earnings per share growth in a range of 10% to 11%. The company also anticipates an annual adjusted operating margin expansion of 50 basis points (excluding dispositions). These projections reflect the company's confidence in maintaining its growth trajectory and improving operational efficiency in the coming year.

In terms of capital allocation, the company's Board of Directors approved a dividend of $0.25 per share, payable on March 28, 2025, to shareholders of record as of March 14, 2025. Additionally, Global Payments is entering into a $250 million accelerated share repurchase plan, further demonstrating its commitment to returning capital to shareholders while maintaining a strong financial position.



In conclusion, Global Payments Inc.'s Q4 2024 earnings call highlighted the company's strong financial performance, strategic focus on long-term growth, and the significant impact of its operational transformation on long-term financial projections and shareholder value. With a compelling outlook for 2025 and a commitment to returning capital to shareholders, Global Payments is well-positioned to continue its growth trajectory and create value for investors.