Visa profit beats estimate as payment volumes rebound By Reuters

© Reuters. View shows Visa credit cards

(Reuters) – Visa Inc (NYSE:) beat Wall Street estimates for quarterly profit on Thursday, as a surge in online spending helped drive a recovery in payment volumes from the coronavirus-induced slump.

The world’s largest payment processor said total spending rose 5% on a constant dollar basis from a year earlier, after dropping 10% in the previous quarter, as customers staying at home due to the health crisis shopped more on the web.

“We saw sustained strength of debit and eCommerce volumes as well as resilient domestic spending in most countries,” Chief Executive Officer Alfred Kelly Jr said.

Visa’s shares were up 1.2% in extended trading as the company said the number of processed transactions rose 4% and that it approved a new $8 billion share buyback program.

But cross-border volume slumped 21% as the pandemic continued to hurt travel demand, with volumes excluding transactions within Europe crashing 33%.

The resurgence of infections in several countries led to border closures, which mainly impacted card-present spending, Visa said. A card-present transaction is one in which a customer physically swipes a card to make a payment.

Visa also did not provide a forecast for full-year 2021 due to the COVID-19 crisis.

However, its peers Mastercard Inc (NYSE:) and American Express Co (NYSE:) said earlier they expect a near-term uptick in business as easing lockdowns and improved vaccination efforts boost travel.

Visa reported a net income of 1.42 per Class A share for the first quarter ended Dec. 31, compared with analysts’ estimates of $1.28 per share, according to IBES data from Refinitiv.

The company’s net revenue fell 6% to $5.69 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.