Visa’s net income came in at $2.4 billion, or $1.07 per share, lower than last year’s $3.1 billion and $1.37/ share. The adjusted EPS exceeded analysts’ forecast of $1.03, by coming in at $1.06.
The company's revenue fell to $4.84 billion, from last year's $5.84 billion. However, it beat the $4.82 billion expected.
The value of online transactions increased by more than 25% weekly since April, two times faster than before the pandemic.
Visa added more than 80 million new contactless cards in the States in the first six months of the year and expects the number to increase as the virus is still present. The number of online transactions made with Visa credentials in the US increased by 12% in June compared to the beginning of the year.
From analysts’ point of view, the earnings were pushed by a 39% reduction of advertising, promotional, and marketing spending.
Visa didn’t provide future guidance, as uncertainties caused by the pandemic are still lingering.
In after-market trading, Visa stock price lost 1.6%. In the past quarter, the stock price increased by 15%, while USA30 added 9%.
Sources: marketwatch.com, finance.yahoo.com