Visa beats the street on profit in fourth quarter
Global cashless payment provider Visa beat quarterly profit expectations when it released its latest earnings report on Wednesday. The company said that its payment volumes rose by 9.8% to $1.93 trillion on a constant dollar basis against the same period in 2016, with the U.S. accounting for 43% of that total. This paints a bright picture of consumer spending in the world’s largest economy – potentially good news for Visa’s competitor MasterCard, which will report earnings next week.
Visa’s share price has risen by 42% so far this year
SOURCE: Yahoo Finance
The payment giant’s net income rose by 11%, year on year, to $2.14 billion in its fourth quarter, and earnings rose to 90¢ per share, beating Wall Street’s estimates of 85¢ per share. This marks the eighth straight quarter that Visa has beaten analysts’ expectations.
Chief executive Alfred Kelly Jr. said: "Visa ended our fiscal year as we began, with strong growth across payments volume, cross-border volume and processed transactions, which was bolstered by the addition of Visa Europe."
Total operating revenue also beat analysts’ expectations, rising 14% from a year ago – the fifth straight quarter it’s done so, and cross border volumes increased by 10% year on year.
Kelly says the future is bright. On the company’s earnings call, he said: “Our growth has been robust despite exchange rate headwinds for most of the year, and these headwinds appear to be abating as we go into next year. And then the addition of Europe to the Visa lineup has been a real catalyst for growth in 2017.”
Dominion holds Visa in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.