uploads/2018/07/american-express-cards-credit.jpg

Visa Posts Strong Fiscal Q3 2018 Results: Payments Volume Rose

By

Updated

Visa’s results

On July 25, Visa (V) posted its third fiscal quarter results. The company posted an EPS of $1.20, which exceeds Wall Street analysts’ expectations by $0.11. According to the company’s management, the third fiscal quarter results were impacted by the favorable economic environment globally and business fundamentals.

Visa’s payments volume rose 11% YoY, on a constant dollar basis, in the third fiscal quarter. During the same period, the company’s total processed transactions rose 12% YoY. In the March quarter, Visa’s payment volumes were $1.9 trillion, while Mastercard’s (MA) gross dollar volumes were $1.4 trillion. To calculate Visa’s service revenues, the previous quarter’s payments volumes are taken into consideration.

Article continues below advertisement

Visa’s revenues  

In the third fiscal quarter, Visa generated revenues of $5.24 billion, which beat the expectations by $150 million. Capital One Financial (COF), a consumer finance company (IYF), posted total net revenues of $7.2 billion in the second quarter, while American Express’s (AXP) total revenues were $10 billion.

Of Visa’s total payments volumes, which amounted to $2.1 trillion in the third fiscal quarter, its debit programs contributed $919 billion and credit contributed $1.2 trillion.

Visa saw $928 billion in payments volume from the US in the third fiscal quarter, which implies 10.5% growth YoY on a constant dollar basis mainly due to lower unemployment levels. On a sequential basis, the growth represents a marginal rise. In the second quarter, the payments volume grew 10.1% YoY. Commerical and debt transactions contributed to the sequential increase.

Visa expects strong growth opportunities from the European region. The European economy depends on cash for the transactions.

Advertisement

More From Market Realist