Visa Inc. shares were dipping in after-market trading Thursday, though the payments giant beat with its latest earnings during a period of “resilient” spending.
The company generated fiscal first-quarter net income of $4.9 billion, or $2.39 a share, compared with net income of $4.2 billion, or $1.99 a share, in the year-prior period. After adjustments, Visa
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earned $2.41 a share, beating the FactSet consensus view, which was for $2.34 a share.
Revenue rose to $8.63 billion from $7.94 billion, whereas analysts had been looking for $8.56 billion.
The company saw an 8% boost in payments volume during the latest quarter, while processed transactions rose by 9%.
“Consumer spending remained resilient,” Visa Chief Executive Ryan McInerney said in a release.
The company witnessed a 16% boost in volume from cross-border transactions, which take place when someone makes a purchase from a merchant based in a different country. Cross-border volume typically is seen as a proxy for international travel, though it also encompasses international e-commerce purchases.
The stock was off 3% in after-hours trading.
Mizuho analyst Dan Dolev noted that U.S. payment volumes decelerated in the fiscal first quarter and in the first three weeks of January, a trend driven by debit transactions.
For the fiscal second quarter, Visa expects net revenue to grow at an “upper-mid” to high-single-digit rate. The company also expects earnings per share to grow at a “high-teens” pace from a year before.
Analysts had been modeling $8.7 billion in March-quarter revenue, up 8.6% from a year before, along with $2.34 in adjusted earnings per share, up 12%.
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