Sales and profit slipped in the fiscal 2021 second quarter ended March 31 amid depressed foreign travel, but Visa still beat analysts’ estimates.
The payment processing titan registered net income of $3.026 billion, or $1.38 a share, in the quarter, down from $3.084 billion, also $1.38 per share, last year. The FactSet consensus called for $1.27 a share in the latest quarter.
Revenue slipped 2% to $5.729 billion from $5.854 billion. The analyst consensus called for $5.56 billion in the latest quarter.
Visa srecently stood at $234.13, up 1.83%, in after-hours trading. It has climbed 19% in the past six months, trailing the S&P 500’s 23% gain amid the slump in foreign travel.
The company said payments volume rose 11% from the same period a year ago, which included the first few weeks of the coronavirus pandemic.
“Our key business driver growth rates are starting to ramp up, reflecting the depressed levels in 2020 due to COVID-19 and making year-over-year comparisons difficult to interpret,” the company said in a statement.
“Compared to fiscal second quarter 2019 levels, payments volume and processed transactions were both 16 percentage points higher, while cross-border volumes excluding intra-Europe remained 25 percentage points lower.
“All business drivers were consistent or improved from the fiscal first quarter’s results indexed to 2019.”
In other Visa news, the U.S. Justice Department has been investigating incentives Visa offered banks that route more debit-card spending through its network, according to Bloomberg.
Last month, news emerged that Visa is rolling out a program permitting payments to be settled in the cryptocurrency USD Coin, replacing the U.S. dollar's customary role in processing such transactions.