The shares of global financial services behemoth Visa Inc. V experienced a downturn in Wednesday’s pre-market trading, following a minor shortfall in the company’s third-quarter revenue.
What Happened: According to Benzinga Pro, Visa’s shares were trading at $256.54 in the pre-market, a 3.12% drop since its close of $264.79 on Tuesday, following a 2% decline in after-hours trading on Tuesday.
The company reported third-quarter earnings of $2.42 per share, matching analysts’ consensus estimate. However, the quarterly sales were slightly off the mark, coming in at $8.9 billion, a 0.18% miss from the expected $8.92 billion. Despite the miss, this still represents a 9.57% increase from the same period last year.
Visa also reported a 7% increase in payment volume, a 14% rise in cross-border volume, and a 10% surge in processed transactions for the third quarter. The total processed transactions for the quarter ending June 30, 2024, were 59.3 billion, marking a 10% increase from the previous year. The third-quarter service revenue was $4 billion, an 8% increase from the prior year.
Why It Matters: Despite the slight revenue miss, Visa’s third-quarter results showed strong growth in key areas. The 7% increase in payment volume and 14% rise in cross-border volume indicate a robust recovery in consumer spending. The 10% surge in processed transactions also points to a growing reliance on digital payments, a trend that has been accelerated by the ongoing pandemic.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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