The stock price of Visa (NYSE: V) increased after reporting strong second-quarter financial results ended March 31, 2017.
Visa shares closed $91.15 per share, up by 1.56% on Thursday. The company’s stock price went up further by 2.30% to $93.25 during the extended hours after the company released its quarterly results.
Visa second-quarter results
Visa reported that adjusted earnings $0.86 per share and revenues of $4.48 billion in its second quarter. It exceeded the $0.79 in earning per share and $4.29 billion in revenue expected by Wall Street analysts.
The world’s largest payments network operator said its revenue rose 23% driven by the inclusion of unit in Europe and continued growth in payments volume, cross-border volume, and processed transactions.
Visa said its payments volume growth was 37% (on constant currency basis) over the previous year at $1.7 trillion. Cross-border volume climbed 132% and total processed transactions went up 42% to 26.3 billion.
The company’s service revenues increased 17% to $2 billion, data processing revenues rose 25% to $1.8 billion, international transactions revenues went up 41% to $1.5 billion, and other revenues jumped 3% $203 million.
Visa continues to execute amid geo-political uncertainty
Visa CEO Alfred F. Kelly, Jr., said, “In the face of geo-political uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across nearly every part of our business.”
“Robust growth in payments volume, cross-border volume and processed transactions drove better than expected results. Looking ahead, we are continuing our efforts across the globe to electronify commerce and digitize economies to the benefit of consumers and societies alike,” added Kelly.
The company returned around $2.1 billion capital to shareholders in the form of dividends and stock buyback. Its Board of Directors approved a new $5 billion class A common stock repurchase program.
On Tuesday, the Board declared a quarterly cash dividend of $0.165 per share of Class A common stock to all holders of record as of May 19, 2017. It also announced the appointment of John F. Lundgren, former CEO of Stanley Black& Decker, as a new independent director.
The company’s Board conducted a thoughtful search for a new independent director, according to Kelly. He described Lundgren as an experienced leader with tremendous operational and strategic knowledge in consumer products. Kelly is confident that Lundgren will be invaluable to Visa as its expands its network and bring innovative payment solutions to market
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