Visa (V.US) reports second-quarter results.
The Zhitong Finance App learned that on Wednesday morning Beijing time, Visa (V.US) announced the results for the second fiscal quarter. According to the data, the company's Q2 net revenue was US$8.8 billion, up 10% year over year, better than market expectations of US$8.62 billion; adjusted earnings per share were US$2.51, better than market expectations of US$2.44.
Although interest rates have remained high for a longer period of time, US consumer spending has remained surprisingly elastic, and Americans still want to spend money on bulky goods and international travel.
Visa executives said in a conference call that international travel continues to be healthy, particularly outside of major markets such as the US and Europe, but also pointed out that travel in the Asia-Pacific region has been weak as post-pandemic recovery continues to be slower than expected.
But the world's largest payment processor said strong e-commerce trends helped offset the weakness in the Asian market.
“Some markets have yet to reach 2019 levels, with Asia being particularly prominent. We do think it will continue to recover this year. But compared to our own expectations, Asia is moving a little slower than we expected,” said Chris Suh, Visa's chief financial officer.
Visa's second-quarter payments increased 8%. Cross-border payments excluding within Europe (a measure of international travel demand) increased by 16%. Processed transactions increased 11% during this period.
“Consumer spending has remained relatively stable in all segments, from low consumption to high consumption. Our data doesn't show any meaningful change in consumer group behavior,” Suh said during a conference call after the earnings report was released.
Summer is also usually the peak travel season, as people take international flights and US domestic flights for vacations.
Visa anticipates a “low double digit” increase in net revenue for the current quarter ending June 30. The company also reaffirmed its 2024 revenue and profit forecast.
Dan Dolev, senior analyst at Mizuho, said: “Many investors think they will have to lower their performance expectations, but the truth is, they haven't done that, which is a good thing for Visa.
Credit card giant American Express (AXP.US)'s first-quarter results announced last week also surpassed market expectations.
As of press release, Visa rose 2.15% to $280.0 after the market.