As per reports, Visa Inc. (V) announced Q4 profits this week, much below Wall Street estimates driven by high unemployment caused by the coronavirus-induced recession and low consumer spending. Total spending decreased by 10% and the number of processed transactions dropped 13%. Cross-border transactions dropped 47% as the pandemic continued to hurt travel demand.
Visa’s net income dropped to $2.4 billion, or $1.07 per Class A share, for the quarter ending Sept. 30, from $3.03 billion, or $1.34 per Class A share.
Net revenue decreased by 17% to $4.8 billion due to limited consumer spending. Analysts had been expecting an 18.5% slide in revenue and earnings of $1.09 per share.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Their mission is to connect the world through the most innovative, reliable, and secure payment network – enabling individuals, businesses, and economies to thrive. Their advanced global processing network, VisaNet, provides secure and reliable payments around the world and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying its brand, products, people, network, and scale to reshape the future of commerce. To learn more about Visa (V) and to track its ongoing progress please visit the Vista Partners Visa (V) Coverage Page.)
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