Visa (V) Q3 Earnings Report Preview

Visa Inc (NYSE:V) is one of the largest digital payment processors 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 payments technology company recently announced better-than-expected financial results for the third quarter. Visa reported earnings of $2.6 billion, or $1.18 per share for the three months ended June, higher than $2.37 billion, or $1.07 per share in the comparable period of 2020. On an adjusted basis, the company earned $1.49 per share, ahead of the consensus forecast of $1.49 per share.

Revenue came in at $6.1 billion, up 27 percent from $4.84 billion in the year-ago quarter. Analysts, on average, were expecting Visa to report revenue of $5.86 billion. Payment volumes for the third quarter climbed 34 percent amid higher cross-border travel spending.

In addition, service revenue improved 17 percent on a year-over-year basis to $2.8 billion, while data processing revenue jumped 32 percent to $3.3 billion. Comparatively, international transaction revenue climbed 54 percent to $1.7 billion.

Commenting on the results, CEO Alfred F. Kelly said, “Visa delivered another strong quarter as many key economies are well into a reopening-driven recovery. This was best demonstrated by credit and face-to-face spending bouncing back while debit and eCommerce volumes remained robust from accelerated cash digitization sparked by the pandemic. Additionally, cross-border travel spending improved as vaccination rates rose and more borders opened.”

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