Visa Sees Growth in E-commerce, Tap to Pay, But Earnings Fall on Reduced Spending
Visa (NYSE: V) beat earnings estimates in its fiscal third quarter but saw a decline in net income due primarily to a reduction in consumer spending related to the recession.
Net income in the fiscal third quarter ended June 30 was $2.4 billion or $1.07 per share, down 23% from the third quarter of last year. Revenue was down 17% to $4.8 billion, driven by declines in payments volume, cross-border volume, and processed transactions.
Payments volume was down 10% year over year, which reflects lower consumer spending due to the recession, high unemployment, and stay-at-home orders. Visa officials noted, however, that payments volume in the U.S. "meaningfully improved" as the quarter progressed, driven by the relaxing of shelter-in-place restrictions in most states. Cross-border volume -- shoppers and merchants in different countries -- was down 37%. Further, total processed transactions were down 13% to $30.7 billion, year over year.
Source Fool.com
