Visa Inc. (V) reports quarterly profits, beating Wall Street estimates and witnessing a surge in online shopping during Christmas and New Year holidays, a much-needed recovery in payment volumes from the coronavirus-driven slump. U.S. holiday sales increased 8.3% last year to record their best growth in at least 19 years, as consumers splurged on gifts. Visa informed a rise in total spending by 5% on a constant dollar basis from a year earlier, after a slump of 10% in the previous quarter.
Cross-border volume dropped 21% from a year earlier but performed better than the previous quarter with a 47% crash. The number of processed transactions increased 4%, and the company approved a new $8 billion share buyback program. Visa reported a net income of 1.42 per Class A share for the first quarter ending December 31, in comparison to analysts’ estimates of $1.28 per share.
“U.S. holiday spending was quite different this year, but had a similar overall growth to the last 3 years of the holiday season,” stated Chief Executive Officer Alfred Kelly Jr. Holiday retail spending growth broadly accelerated in Canada, UK, Brazil, and Australia, he added.
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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