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Visa Inc. shares rose in after-hours trading Tuesday after the payment-technology giant easily exceeded revenue and earnings expectations for its most recent quarter.
The company posted fiscal second-quarter net income of $3.65 billion, or $1.70 a share, compared with $3.03 billion, or $1.38 a share, a year earlier. On an adjusted basis, Visa earned $1.79 a share, up 30% from a year prior and ahead of the FactSet consensus, which was for $1.65 a share.
Visa’s
V,
revenue rose to $7.19 billion from $5.73 billion a year before. Analysts tracked by FactSet had been modeling $6.83 billion in revenue.
Shares were up more than 4% in after-hours trading.
“The omicron variant impacts were short lived and the global economic recovery that began in the middle of last year continued,” Chief Executive Al Kelly said in a statement. “While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery and through the enablement of traditional and newer ways to pay globally.”
Payment volume was up 17% in the quarter, while processed transactions were ahead 19%. Visa saw 38% growth in cross-border volume, or 47% when excluding transactions within Europe.
The report follows one from American Express Co.
AXP,
late last week, which showed benefits from a travel rebound. Fellow payment-technology peers are due to follow in the days ahead, with PayPal Holdings Inc.
PYPL,
scheduled to report its results Wednesday afternoon, and Mastercard Inc.
MA,
on the docket for Thursday morning.
Read: PayPal has been cut in half by Wall Street, but ‘uncertainty’ still looms as earnings approach
Visa shares have declined 2.3% over the past three months as the Dow Jones Industrial Average
DJIA,
of which Visa is a component, has lost 2.7%.
