Visa earnings - in line with the expectations

By: Miguel A. Rodriguez

09:45, 14 September 2020

Visa had a good financial report

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%. 


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.