Shares of Visa Inc. rose more than 1% in after-hours trading on Wednesday after the company beat expectations with its latest quarterly results and posted a return to growth in credit transactions. The company posted fiscal second-quarter net income of $ 3 billion, or $ 1.38 per share, compared to $ 3.1 billion, or $ 1.38 per share, a year earlier. On an adjusted basis, Visa V, -0.19% also earned $ 1.38 per share, down from $ 1.39 per share the previous year. The FactSet consensus was $ 1.27 per share in both GAAP and adjusted earnings.
Visa’s revenue for the quarter fell to $ 5.73 billion from $ 5.85 billion a year earlier, while analysts followed by FactSet were modeling $ 5.56 billion. The company saw payment volume grow 11% in the March quarter and processed transactions increased 8%. The volume of cross-border transactions, or those made between parties from different countries, fell 11% in the quarter, or 21% if transactions within Europe are excluded. The pandemic has hurt spending growth, especially with international travel largely stagnant, but CEO Al Kelly said at the Visa filing that “the recovery is on track in several key markets.” Visa posted positive growth in credit transactions during the March quarter, as well as positive growth in card-present transactions. Debit transactions proved to be more resilient than credit transactions during the pandemic, as people focused more on spending their own money. Growth in both debit transactions and e-commerce transactions, another hot area, “remained at very healthy levels” in the last quarter, Kelly said in her statement. Visa declined to offer an outlook for the full fiscal year, citing uncertainties in the forecast caused by the pandemic.