Global Payments Inc. (NYSE: GPN) reported its financial results for the quarter ended March 31, 2020, on Wednesday before the market opens. The results exceeded analysts’ expectations.
Global Payments posted a 28% jump in earnings for the first quarter of 2020 helped by higher revenue despite a 32% dip in the EPS due to an increase in the weighted-average number of shares outstanding. Adjusted EPS increased by 18%. The company has been pleased that its business has continued to operate normally with the vast majority of its nearly 24,000 people worldwide working from home since mid-March.
In addition to the existing expense synergy plan related to the merger, the company has implemented cost initiatives that it expects to deliver at least an incremental $400 million of savings over the next 12 months. Despite seeing early signs of economic stabilization in April, Global Payments expects the additional efforts would position it to emerge from this crisis at the same strong position.
The company’s board of directors approved a dividend of $0.195 per share. The dividend is payable on June 26, 2020, to shareholders of record as of June 12, 2020.