Global Payments Reports Q4 Profit Surge Amidst Holiday Spending Boom
Payment technology giant Global Payments saw a significant increase in fourth-quarter profit as customers boosted spending during the holiday season.
Key Drivers:
* Strong labor market with low layoffs and wage growth fueling consumer spending.
* Global Payments' earnings tied to consumer spending patterns.
* Visa's robust first-quarter profit in January indicated consumer splurges on travel and dining.
Company Overview:
Global Payments has streamlined operations and divested non-core assets to enhance its focus in the competitive payment space.
Statements from CEO:
Cameron Bready, CEO, highlighted 2024 as a "pivotal year" with the launch of the company's transformation agenda.
Financial Highlights:
* Q4 revenue rose 3.4% to $2.52 billion.
* Merchant solutions, Global Payments' primary revenue driver, increased 3.6% year-over-year.
* Adjusted net profit grew to $742.3 million ($2.95 per share), up from $692.2 million ($2.65 per share) in Q4 2023.
* Global Payments projects 10-11% adjusted EPS growth for 2025 and 5-6% adjusted net revenue growth.