Visa continues to benefit from increased travel and sees more room for recovery
Shares of Visa Inc. rose 1.3% higher in after-hours trading Tuesday after the payment-technology giant easily topped profit expectations for its latest quarter and called out a continued recovery in travel spending.
The company logged fiscal second-quarter net income of $4.26 billion, or $2.03 a share, compared with $3.65 billion or $1.70 a share, in the year-earlier quarter. On an adjusted basis, Visa V earned $2.09 a share, up from $1.79 a share a year before, while analysts tracked by FactSet were modeling $1.99 a share….
Visa Inc. recently reported earnings that topped expectations due to the strong rebound of travel-related payments during the second quarter of 2021.
Visa reported its second quarter earnings on Thursday, April 29th, 2021 and showed that payment volume had increased by 10 percent since the first quarter of 2021. Visa’s second quarter adjusted earnings per share were $1.53 while revenue totaled $6.14 billion, both exceeding Wall Street Estimates. The company highlighted the strength of its network and its continued investment in technologies that enhance security and facilitate payment processing.
The company attributed the rebound in payment volume to a desire from consumers to enjoy life again, with a focus on travel-related purchases such as flights, hotels and cars. In addition, cross-border travel spending increased despite global travel restrictions, indicating an increased demand for international travel.
In order to remain competitive and meet their business objectives, Visa announced plans to continue investing in new technology, such as AI and Blockchain, and expanding into new markets. The company is also focusing on increasing data security and offering new types of payment solutions.
The company’s Chief Financial Officer Vasant Prabhu said in the earnings report, “Visa’s robust second quarter results demonstrate the strength of our business that is built on the intersection of commerce, technology and security, especially as people now have the confidence to move around The World to meet their own needs.”
Overall, Visa’s strong second quarter earnings indicate its ability to respond quickly to changing consumer needs and rapidly adapt in order to remain competitive. With investments in new technology and an increased focus on data security, Visa is able to maintain its leadership position in the payments space.