Savvy Trades and Investments

[researcher59]

GPN -8 to 103, after growth guidance at investor presentation falls short of analyst estimates -

briefing -

Global Payments follow-up; probing lows after detailing medium term outlook at Investor Day (105.03 -5.95) :
Preliminary 2025 outlook: Adjusted net revenue growth (ex-dispositions) MSD; Adjusted operating margin expansion +50 bps; Adjusted EPS growth ~10%
2026-2027: Adjusted net revenue growth (ex-dispositions) MSD-HSD; Adjusted operating margin expansion 50-100 bps; Adjusted EPS growth low teens
Financial Strategy / Go-forward capital allocation: 90%+ adj. FCF conversion, Achieve and maintain ~3x net leverage, CapEx of 7-8% of adj net revenue, $2B+ share repurchases annually, Target $7.5B+ of capital returned over next 3 years, Generate $8.5B-$9B of cumulative FCF over next 3 years, Potential divestitures in range of $500M - $600M in annual adj. net revenue

https://d1io3yog0oux5.cloudfront.net/_eb79e7fe5842eebbefe68778f9fc592d/globalpayments/files/pages/globalpayments/db/2253/content/Global_Payments_2024_Investor_Conference_Presentation.pdf