What happened

The stock of Global Payments (NYSE:GPN) climbed by nearly double-digit percentages Wednesday before settling down to close almost 2% higher on the day. Better-than-expected Q1 fiscal 2020 profitability was the likely catalyst.

Bank card on PC keyboard.

Image source: Getty Images.

So what

For the quarter, adjusted revenue more than doubled on a year-over-year basis to land at almost $1.73 billion. Adjusted net income also doubled and then some, improving by 123% to just under $474 million, or $1.58 per share. On average, analysts had expected $1.74 billion on the top line, but an adjusted per-share net profit of only $1.53.

Much of the gains in revenue and profitability can be attributed to the company's absorption of TSYS, a $21.5 billion acquisition that was consolidated into its operations last September. Global Payments expects TSYS to help it achieve $125 million in revenue synergies annually, while saving $350 million in costs. Other cost-saving measures should help it weather the economic uncertainty caused by the coronavirus pandemic.

Global Payments also declared a fresh quarterly dividend of just under $0.20 per share, yielding 0.5%. The payout will be dispensed on June 26 to investors of record as of June 12.

Now what

The coronavirus will slow business for Global Payments somewhat. Yet demand for its solutions, which cover a range of contactless payment methods, is poised to grow. The company seems to be in the right place at the right(ish) time, and investors are clearly taking notice.