Wednesday, August 10

Visa posted higher earnings and beat Wall Street expectations

Payment companies are watching volumes rebound from the coronavirus-induced slide, as massive government stimulus and rapid vaccine deployment fuel economic recovery, unleashing demand for both goods and services.

The reopening of the US economy has also supported travel demand and purchases from consumers, stuck in their homes for more than 18 months, but there are fears that supply restrictions could hit the holiday shopping season.

The Visa’s net profit increased to $ 3.58 billion, or $ 1.65 per Class A share, for the fourth quarter ended September 30, from $ 2.14 billion, or $ 0.97 per Class A share, for the same period one year earlier.

Analysts, on average, expected a profit of $ 1.54 per share, according to Refinitiv data.

Total cross-border volume increased 38% in constant dollars over the previous year.

“Our performance was driven by continued recovery in many global economies,” said the CEO. Alfred Kelly Jr.

The health crisis has also caused a huge shift in consumer spending towards e-commerce and generated more transactions for payment companies.