Fiscal 3Q17 performance
Visa (V) reported strong numbers on net revenues on the back of processed transactions, cross-border volumes, and payments volumes. Europe was a major contributor in driving net revenues. Visa posted 3Q17 earnings per share (or EPS) of $0.86, which beat the analyst estimate of $0.81. Visa’s fiscal 3Q17 EPS is the same as it was in fiscal 2Q17. Visa posted revenues of $4.6 billion in fiscal 3Q17, reflecting a substantial rise of 26% on a YoY basis. As the management expected, in fiscal 3Q17, the company witnessed strong growth in its payments volume driven by countries like India, Mexico, Russia, Australia, and the US.
Visa has been planning to enhance its reach in Europe and as a step towards accomplishing this aim, the company has extended its partnership with PayPal (PYPL). Under this partnership, PayPal will be issuing Visa debit cards in Europe. Visa has been using this approach in the Asia-Pacific region and the US. Visa has now decided to extend this approach to Europe, which would help in including European businesses and consumers.