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Visa beats estimates as quarterly profit falls 23%

Credit: REUTERS/PHILIPPE WOJAZER

Visa Inc's results topped analysts estimates on Tuesday with a 23% drop in quarterly profit as consumer spending continued to be pressured by high unemployment due to lockdowns aimed at curbing the coronavirus outbreak.

By David Henry

July 28 (Reuters) - Visa Inc's V.N results topped analysts estimates on Tuesday with a 23% drop in quarterly profit as consumer spending continued to be pressured by high unemployment due to lockdowns aimed at curbing the coronavirus outbreak.

Net income fell to $2.37 billion, or $1.07 per Class A share, in the quarter ended June 30, from $3.10 billion, or $1.37 per Class A share, a year earlier.

Analysts had estimated, on average, that the company earned $1.03, according to IBES data from Refinitiv.

The quarter was the first to reflect how spending on Visa transactions was impacted for three straight months by coronavirus-related shutdowns.

The results marked the first year-over-year decline in quarterly revenue and adjusted net income since the company went public in 2008 and became the world's largest payment network.

Net revenue fell 17% to $4.84 billion, compared with an estimate of $4.83 billion from analysts.

(Reporting by David Henry in New York; Additional reporting by C Nivedita Editing by Sonya Hepinstall)

((David.Henry@thomsonreuters.com; +1-646-223-6114; Reuters Messaging: david.henry.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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