Visa beats the Street, share price rises on the news
Cashless transaction giant Visa released second-quarter earnings last week that overshot Wall Street’s predictions and gave it cause to raise its outlook for the coming year. Unsurprisingly, the company’s share price rose on the back of the news, as investors respond to what is undeniably a robust business harnessing powerful underlying trends for growth.
Visa’s share price jumped last week when it released Q2 results
SOURCE: Yahoo Finance
Visa reported earnings of $1.11 per share, easily beating analysts’ expectations of $1.02 per share. It also overshot on revenue, reporting a figure of $5.07 billion against Wall Street’s expected $4.81 billion. This revenue figure represents “about 13%” growth from the year ago quarter. According to the company’s CEO, Alfred Kelly Jr., growth in cross border transactions and gross payment volume drove these positive results. Kelly said both measurements were up by 11% against the same period last year.
Speaking to analysts on the earning call, Kelly expressed satisfaction with the number of clients Visa had retained through its acquisition of Visa Europe, and outlined a number of further acquisitions and initiatives the company undertook in the quarter. Summing up a positive three months, he said:
“We continue to execute on our growth strategy and look forward to the next 10 years. The progress we’ve made in the first half of fiscal year 2018 furthers our confidence in the long-term investments we’re making to drive profitable growth in the rapidly changing payments environment.”
In light of the positive results unveiled on Wednesday, Visa said that it “now expects adjusted full-year earnings growth in the high 20 percentage-point range.”