Visa beats estimates on revenue and earnings
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Visa beats estimates on revenue and earnings

Cashless transaction giant Visa beat the Street’s expectations on revenue in the first quarter of 2019, as results released this week demonstrated. Despite this beat, investors were concerned by the fact that expenses rose and spending by Visa customers abroad fell against the same period last year. Nonetheless, Visa was able to translate this into a quarterly profit figure that came in 14% higher, year on year.

Visa’s share price has increased by 23% so far this year

26 04 visa

Source: Yahoo Finance

Visa said that overall revenue rose by 8% against the same period last year to $5.49 billion, beating analysts’ expectations for $5.47 billion. The company also beat on earnings, delivering $1.31 per share against consensus estimates of $1.24 per share.

CEO Al Kelly praised Visa for delivering “another solid quarter demonstrating the power of the business model,” and noted that Visa had managed to beat out rival Mastercard to buy Earthport, a UK-based company that specialises in cross-border payments for banks and other financial firms. He also spoke to the importance of Visa’s continued higher expenditures, which are being pumped into technological investments:

“We remain focused on investing in multiple growth opportunities including strategies that both grow the overall pie for payments and funds transfer as well as enhance our capabilities to ensure we continue to be the preferred partner in payments. Examples include the embedding of these credentials into more transaction flows, including those with new partners in the B2B space, P2P, FinTech, digital bank, and wallet space, growing the reach of our digital offerings such as tokenization and cyber source and growing our capabilities in areas like risk management, fraud prevention, loyalty, and data products. Combining these solutions with one of the most recognized and strongest brands in the world is compelling for both existing and new partners.”

Disclosure

Dominion holds Visa in its Global Trends Ecommerce Fund.


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