Visa Inc. shares rose more than 1% after close of trading on Wednesday after the company beat expectations on its latest quarterly results and returned to growth in credit deals.
The company posted net income of $ 3.0 billion, or $ 1.38 per share, for the second quarter, compared to $ 3.1 billion or $ 1.38 per share last year. Visa on an adjusted basis
also earned $ 1.38 per share, compared to $ 1.39 per share last year. The FactSet consensus was $ 1.27 per share on a GAAP basis with adjusted earnings.
Visa’s revenue for the quarter declined to $ 5.73 billion from $ 5.85 billion a year ago, while the analysts covered by FactSet modeled $ 5.56 billion.
The company’s payment volume increased 11% in the March quarter, while transactions processed increased 8%. The volume of cross-border transactions or transactions between parties from different countries decreased 11% or 21% excluding transactions within Europe during the quarter.
The pandemic has impacted spending growth, especially as international travel has largely stalled. However, CEO Al Kelly said in Visa filing that “the recovery is in full swing in a number of key markets.” Visa saw positive growth in credit transactions and positive growth in card-presence transactions in the March quarter.
Direct debit transactions Proven to be more resilient than creditworthy throughout the pandemic when people became more focused on spending their own money. The growth in both debit and e-commerce transactions, another important area, “remained at a very good level” in the last quarter, said Kelly in his statement.
Visa declined to provide an outlook for the full fiscal year, citing the uncertainties in projections caused by the pandemic.