What happened
Shares of Global Payments (GPN -1.76%) slipped 11.2% in October, according to data from S&P Global Market Intelligence. The fintech stock lost ground in conjunction with sell-offs that rocked the broader market in the second half of the month.
Global Payments published better-than-expected sales and earnings when it reported third-quarter results on Oct. 29. However, the earnings release coincided with a steep pullback for the broader market, and the company's share price ended the month down double digits.
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So what
Global Payments posted non-GAAP (adjusted) earnings per share of $1.71 on adjusted revenue of roughly $1.746 billion. Adjusted sales were down about 4% in the quarter, but the company's adjusted operating margin rose 250 basis points to 41.1%, and the overall results were still better than the market anticipated. The average analyst estimate had called for earnings per share of $1.66 on sales of $1.725 billion.
Now what
Global Payments stock has posted gains in conjunction with the market's recovery early in November's trading. The fintech stock is up 8.4% in the month so far.
Global Payments hasn't given detailed near-term guidance, but management has said that it expects margin expansion and earnings-per-share growth in the fourth quarter. The team is also guiding for adjusted earnings per share of $8 next year, provided global recovery from conditions related to the coronavirus pandemic continues.
Global Payments has a market capitalization of $52 billion and trades at roughly 27 times this year's expected earnings.
