Visa shares slip despite beating first quarter expectations

Investing.com -- Visa Inc Class A (NYSE: V) reported better-than-expected fiscal first quarter results on Thursday, though shares slipped 1% in after-hours trading as the strong performance failed to impress investors.

The payment processing giant posted adjusted earnings per share of $3.17, exceeding analyst estimates of $3.14, while revenue rose 15% YoY to $10.9 billion, surpassing the consensus forecast of $10.68 billion. Revenue increased 13% on a constant-currency basis compared to the same quarter last year.

Visa's performance was driven by resilient consumer spending and a strong holiday season, with payments volume increasing 8% YoY on a constant-dollar basis. Cross-border volume excluding intra-Europe transactions, which drives international transaction revenue, grew 11% YoY, while total processed transactions increased 9% to 69.4 billion.

"Visa delivered a very strong fiscal first quarter with net revenue up 15% year-over-year, GAAP EPS up 17% and non-GAAP EPS up 15%," said Ryan McInerney, Chief Executive Officer of Visa. "Our purposeful investments in our Visa as a Service stack continue to position us as a payments hyperscaler to deliver technology and infrastructure that redefine what's possible in payments."

The company's service revenue rose 13% to $4.8 billion, while data processing revenue increased 17% to $5.5 billion. International transaction revenue grew 6% to $3.7 billion, and other revenue jumped 33% to $1.2 billion.

During the quarter, Visa repurchased approximately 11 million shares at an average cost of $342.13 per share, totaling $3.8 billion. The company's board also declared a quarterly cash dividend of $0.67 per share, payable on March 2.

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