Can Global Payments Navigate Lower Americas Revenues in Q1 Earnings?

Global Payments Inc. GPN is set to report first-quarter 2025 results on May 6, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.68 per share on revenues of $2.2 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The first-quarter earnings estimate declined by 5 cents over the past 60 days. The bottom-line projection indicates a year-over-year increase of 3.5%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 0.7%. Image Source: Zacks Investment ResearchFor 2025, the Zacks Consensus Estimate for Global Payments’ revenues is pegged at $9.28 billion, implying a rise of 1.4% year over year. Also, the consensus mark for current year EPS is pegged at $12.20, implying a jump of around 5.6% on a year-over-year basis.Global Paymentsbeat the consensus estimate in two of the last four quarters and missed twice. This is depicted in the figure below.Global Payments Inc. Price and EPS Surprise Global Payments Inc. price-eps-surprise | Global Payments Inc. QuoteQ1 Earnings Whispers for GPNOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here.GPN has an Earnings ESP of -1.11% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.You can see the complete list of today’s Zacks #1 Rank stocks here.What’s Shaping GPN’s Q1 Results?The Zacks Consensus Estimate and our model estimate for adjusted revenues from Merchant Solutions indicate a 0.1% increase from the year-ago period’s reported number of $1.68 billion. Booking growth, new POS locations, and an expanding partner network are likely to have aided the Merchant Solutions segment. The consensus mark for adjusted operating income indicates 1.5% growth from the year-ago level of $790.4 million, while our model estimate suggests a 1.7% increase.Both the consensus estimate and our model estimate for Issuer Solutions’ adjusted revenues signal a more than 2% increase from the year-ago figure of $515.6 million. A rise in traditional accounts on file and increasing transactions are likely to have aided the segment in the quarter under review. While the consensus estimate for adjusted operating income from the unit indicates a rise of 1.9% in the first quarter from $241.4 million a year ago, our model estimate implies a 3.3% increase.The Zacks Consensus Estimate for Europe operations suggests a 3.7% year-over-year increase in the first quarter. The above-mentioned factors are expected to have positioned GPN for year-over-year growth.However, profit growth from the businesses is likely to have been partially offset by increased costs under certain heads in the first quarter. For the upcoming quarter, we anticipate the adjusted cost of service to rise 2.5% year over year. Continuous investments to upgrade digital capabilities are likely to have increased expenditures.The Zacks Consensus Estimates for revenues from Americas operations indicates 1.4% decline from a year ago. Also, the consensus estimate for revenuesfrom Asia Pacific indicates a 0.4% year-over-year fall.How Did Other Stocks Perform?Here are some stocks in the broader payments space that have already reported earnings for this quarter: The Western Union Company WU, Discover Financial Services DFS and Visa Inc. V.Western Union reported first-quarter 2025 adjusted EPS of 41 cents, which beat the Zacks Consensus Estimate by 2.5% due to lower operating expenses, partly offset by Iraq’s low contribution and weakness in CMT segment’s performance despite rising transactions.Discover Financial reported first-quarter 2025 adjusted earnings per share of $4.25, which surpassed the Zacks Consensus Estimate by 28.8% aided by reduced provisions for credit losses, improved net interest margin and strong income growth in both the Digital Banking and Payment Services segments. However, the upside was partly offset by higher operating costs, a decline in total loans and lower Payment Services volume.Visa reported second-quarter fiscal 2025 EPS of $2.76, which outpaced the Zacks Consensus Estimate of $2.68 by 3% thanks to higher processed transactions, payment and cross-border volumes. 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(V): Free Stock Analysis Report Discover Financial Services (DFS): Free Stock Analysis Report The Western Union Company (WU): Free Stock Analysis Report Global Payments Inc. (GPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks