Visa earnings beat estimates, shares rise after hours

Yahoo Finance Video

Yahoo Finance's Jared Blikre reports Visa's quarterly earnings and how the stock is performing.

Video Transcript

EMILY MCCORMICK: We have more earnings results rolling in after the bell this afternoon. And Jared Blikre is standing by with the results from Visa. Jared, break it down for us.

JARED BLIKRE: That's right. We got Visa up 2 and 1/2% in afterhours trading, and that is on some optimism coming out of the payment space. Let me get straight to the numbers. Adjusted EPS for the fourth quarter coming in at $1.81. That's versus estimates of $1.70. And then payment volume-- this is a key stat for them-- $2.97 trillion. The estimate was for lower-- $2.86 trillion. And when you take their payments volume at constant currency, that is up 20% versus estimates of 15%.

Cross-border volumes at constant currency up 40% versus estimates of 26.5%. So the reopening may be a little bit better than we thought during the fourth quarter. Change in cross-border volume nominal USD-- that's US dollars-- that was up 37% versus the estimates of 26.8%. So the total Visa processed transactions, those were $47.6 billion, and that's a little bit heavier, better than the estimate of $46.78 billion. Finally, net revenue came in at $7.06 billion, up $0.24-- or 24% year over year. And the estimate was for $6.8 billion.

Now a little bit of commentary here, and this is coming from the earnings report. As we look ahead, we do not believe the current surge in the pandemic will curtail the recovery. We see economies around the world continuing to improve. And as restrictions are lifted, cross-border travel will continue to recover. So it looks like international spending a definite plus here, and it's nice to see these numbers.

So Visa up 2 and 1/2%. And let's do a little charting here. Payment space under a little bit of pressure over the last six months, down about 5% year to date. You can see over the last six months, down about 18% over the last year, still holding onto gains of about 5%. Guys.