Visa Inc. revenue beats estimate, forecasts muted growth in 2020; shares sour 3%


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Visa Inc. revenue beats estimate, forecasts muted growth in 2020; shares sour 3%

On Thursday, the 30th of January 2020, the Foster City, CA-based American multinational financial services corporation and credit, debit alongside prepaid card issuer, Visa Inc., had unveiled its earnings’ report for its first quarter that ended on December 31st which had been in alignment with an analysts’ estimate, nonetheless, the credit card issuer had also predicted a downbeat revenue growth for 2020 over concerns of global-scale slowdown.

However, the company had also added the amount it would be due on incentives for its banking clients, could add further bubbles in to the expenses, eventually dragging the credit card issuer’s shares’ price down by 3 per cent to $200.75 a share on after-market trading.

On top of that, according to the world’s largest payment processor’s Thursday’s (January 30th) quarterly earnings’ report, the company’s net earnings’ rose by 10 per cent to $3.27 billion or $1.46 per Class A share which has been well in line with the analysts’ estimate, while the company’s client incentives grew by 20 per cent to $1.75 billion during its first quarter that ended on December 31st.

Meanwhile, as the CA-based credit card issuer had fostered an 8 per cent growth in payment volume to $2.36 trillion at its first quarter, Visa Inc. Chief Financial Officer, Vasant Prabhu said in a post-earnings’ call with the reporters, “Since then (the fourth quarter), it has become apparent that renewal activity in fiscal year 2020 could be even higher. ”