Visa Q2 earnings beat estimates as payment volumes climb
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The news: Visa's second quarter results beat Wall Street estimates, as strong consumer spending on travel, entertainment and dining out boosted payment volumes.
The numbers: The world's largest payments processor saw payment volumes rise 8% in the March quarter, year on year, with processed transactions climbing 11%. Cross-border volume excluding transactions within Europe, Visa's key driver for international transaction revenue, increased 16%.
Net revenue reached USD8.8 billion ($13.6 billion), up 8% compared to the prior corresponding period, beating Wall Street expectations of USD8.62 billion. Its adjusted earnings per share of USD2.51 also beat analysts' average expectation of USD2.44, Reuters reported.
Visa shares gained 3% to USD274.11 in extended trading on the Nasdaq after the results.
The context: The March quarter saw Visa complete the acquisition of cloud-native processing platform Pismo and reach an estimated $30 billion landmark settlement with rival Mastercard to cap credit and debit card fees for merchants.
The upbeat result follows a strong earnings report by fellow payment processor American Express Credit last week, which also beat analysts' expectations.
What they said: Visa CEO Ryan McInerney said: “As we head into the second half of the year and beyond, we remain focused on the trillions of dollars of opportunity in consumer payments and new flows and on continuing to deepen our partnerships with clients around the world by adding value across our network of networks".
The sources: Visa earnings release, Reuters
