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Visa Inc. topped $7 billion in quarterly revenue for the first time, buoyed by a quicker-than-expected resumption in travel spending and sustained growth in categories like e-commerce that had been strong throughout the pandemic.
The company generated fiscal first-quarter net income of $4.0 billion, or $1.83 a share, up from $3.1 billion, or $1.42 a share, a year earlier. On an adjusted basis, Visa
V,
earned $1.81 a share. Analysts tracked by FactSet were expecting $1.70 in both GAAP and adjusted earnings per share.
Visa’s revenue rose to $7.06 billion from $5.69 billion, while the FactSet consensus was for $6.79 billion. Analysts surveyed by FactSet weren’t expecting Visa to cross the $7 billion revenue mark until the June quarter.
Payments volume rose 20%, while processed transactions increased 21%. The company saw a 51% increase in cross-border volume when excluding intra-Europe transactions and a 40% bump in overall cross-border volume.
Shares were up 3.4% in after-hours trading Thursday.
Chief Executive Al Kelly saw several drivers of Visa’s results, including continued growth in e-commerce and a faster-than-expected return of cross-border travel spending.
“As we look ahead, we do not believe the current surge in the pandemic will curtail the recovery,” he said in Visa’s earnings release. “We see economies around the world continuing to improve and, as restrictions are lifted, cross-border travel will continue to recover.”
Read: Fintech’s ugly month of losses may offer a ‘fantastic opportunity’ to bargain hunt, say analysts
Visa is the third big payments company to report results this week, after earnings from American Express Co.
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and Mastercard Inc.
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were met with positive stock reactions.
Shares of Visa have lost 4.5% over the past three months as the Dow Jones Industrial Average
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has declined 3.8%.
