Following American Express and Mastercard, Visa (NYSE: VISA) was the last to report earnings this week. The company’s Q1 report was received well by investors; with stock price currently showing a premarket gain of just over 5%.
It has been a mixed week for the payment providers. American Express posted a steller revenue of over $12B, sending the stock soaring early in the week, yet Mastercard’s earnings were interpreted much more negatively, with price action driving the stock down around 2%.
Looking across the earnings reports; similar trends vouch for an improving economic landscape, with a gradual shift in post-pandemic consumer spending providing a clearer picture of a return back to traditional spending habits.
Visa recorded growth across various sectors; payments volume, cross-border volume, and processed transaction growth all accelerated on a year-on-year basis – but it was the strong growth in e-commerce and a resurgence in international travel that bolstered the company’s Q1.
With a defiant Covid outlook, the company doesn’t expect rising cases to deflect an increase in international travel in the coming quarter, meaning that we might be a further increase from an already impressive 40% increase in cross-border volume.
Visa posted net revenue of $7.1B at a rise of 24%, while net profit also improves 25% to $3.9B. The company beat Mastercard but didn’t come close to American Express – which targets a much more specific sector.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.