How Bad of a Hit Will Visa Take From the Coronavirus Economic Lockdown?
Visa (NYSE: V) got 2020 started right. During the first three months of the year (the company's fiscal 2020 second quarter), revenue increased 7% year over year to $5.85 billion, and adjusted earnings per share grew 9% to $1.39. Both figures were slightly better than a mid-April update had let on, and thanks to the digital payment processing leader's higher share of the U.S. industry, growth outpaced what was posted by rival MasterCard.
However, as the coronavirus-induced economic lockdown spread to the United States and other developed markets late in the period, Visa said its transaction activity dropped dramatically. Investors, brace for a far uglier report for the fiscal third quarter.
By the end of Feb. 2020 and into early March, Visa reported that its total transactions processed were growing by mid-teens percentage rates compared with the year prior. U.S. payments volume was notching a similar rate, and cross-border transactions (which are heavily dominated by international travel spending) were growing about 10%.
Source Fool.com
