Earnings Results: Visa stock gains after earnings, CEO expects ‘robust travel recovery’ to continue

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Visa Inc. shares rose in after-hours trading Tuesday after the payment-technology giant easily exceeded revenue and earnings expectations for its most recent quarter.

The company posted fiscal second-quarter net income of $3.65 billion, or $1.70 a share, compared with $3.03 billion, or $1.38 a share, a year earlier. On an adjusted basis, Visa earned $1.79 a share, up 30% from a year prior and ahead of the FactSet consensus, which was for $1.65 a share.

Visa’s
V,
-4.22%

revenue rose to $7.19 billion from $5.73 billion a year before. Analysts tracked by FactSet had been modeling $6.83 billion in revenue.

Shares were up more than 4% in after-hours trading.

“The omicron variant impacts were short lived and the global economic recovery that began in the middle of last year continued,” Chief Executive Al Kelly said in a statement. “While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery and through the enablement of traditional and newer ways to pay globally.”

Payment volume was up 17% in the quarter, while processed transactions were ahead 19%. Visa saw 38% growth in cross-border volume, or 47% when excluding transactions within Europe.

The report follows one from American Express Co.
AXP,
-2.96%

late last week, which showed benefits from a travel rebound. Fellow payment-technology peers are due to follow in the days ahead, with PayPal Holdings Inc.
PYPL,
-4.65%
,
scheduled to report its results Wednesday afternoon, and Mastercard Inc.
MA,
-2.96%

on the docket for Thursday morning.

Read: PayPal has been cut in half by Wall Street, but ‘uncertainty’ still looms as earnings approach

Visa shares have declined 2.3% over the past three months as the Dow Jones Industrial Average
DJIA,
-2.38%
,
of which Visa is a component, has lost 2.7%.