Visa (V) 2021 Q2 Financial Results Preview

Visa Inc (NYSE:V) is the largest digital payment processor in the world. The company primarily generates revenue by charging customers on credit and debit transactions carried out through its platform. Much of its growth in recent years has been fueled by the increased adoption of digital payment methods around the world.

The California-based payments company recently announced its financial results for the second quarter. Visa reported earnings of $3.0 billion, or $1.38 per share for the three months ended March 31, nearly unchanged from $3.1 billion, or $1.38 per share in the year-ago quarter. Excluding items, the company reported adjusted earnings of $1.38 per share, surpassing the consensus forecast of $1.27 per share.

Revenue for the quarter slipped 2 percent to $5.73 billion but came in above analysts’ average estimate of $5.56 billion. Despite a drop in revenue, payments volume jumped 11 percent in the quarter, while total processed transactions rose 8 percent.

If we look at the performance of different segments, service revenue rose 8 percent to $2.8 billion, while data processing revenue jumped 11 percent to $3 billion. However, revenue from international transactions fell 11 percent to $1.5 billion in the quarter.

Speaking on the results, CEO Alfred F Kelly said in a statement, “The COVID-19 pandemic certainly has turned the world upside down in the last year, but we believe we are starting to see the beginning of the end and the recovery is well underway in a number of key markets around the world. This quarter, we saw a return to positive growth for credit and card present transactions, and debit and eCommerce growth stayed at very healthy levels.”

Visa did not offer any financial outlook for the remaining year due to the uncertain global economy and impact of Covid-19 on its operations.

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