Visa Q2 Results Beat Street’s Estimates (V)
Visa Inc. (NYSE: V) reported late last evening that fiscal second quarter profit fell nearly 2% from the year earlier quarter due to unfavorable quarter-on-quarter comparables. The Company recorded a non-cash tax benefit in the same quarter of last year. However, shares gained about 2% in extended trading hours as quarterly revenue climbed 15%, thanks to solid growth across all segments. For the quarter, Visa Inc reported that non-GAAP earnings rose 17%, which also topped Street’s consensus estimate.
For the fiscal second quarter, Visa Inc reported a net income of $1.27 billion compared to $1.29 billion, in the same period of last year. Last year, the Company included non-cash benefit of $208 million linked to deferred tax liabilities. Stripping out this onetime gain, adjusted earnings in the year-earlier quarter would have been $1.08 a share.
On adjusted basis, Visa reported earnings of $1.92 a share while analysts were expecting it at $1.81 a share.
Revenue in the second quarter came at $2.96 billion up from $2.58 billion, in the year-earlier quarter and beating analysts’ consensus estimate of $2.85 billion.
Revenue from services, which are recorded based on payments volume in the preceding quarter, surged 10% to $1.4 billion. Revenue from second quarter activity and data processing soared 25% to $1.2 billion. Revenue from international transaction increased 135 to $831 million.
The Company said that it processed 13.9 billion transactions in the second quarter, a 6% increase from the year-earlier quarter. Payment volume, excluding impact of currency fluctuation, increased 9% to $1 trillion.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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