Visa earnings tick down YOY; payments volume up 5%

Visa Inc. reported adjusted fiscal first-quarter 2021 net income of $3.13 billion, or $1.42 per class A share, down from the $3.27 billion, or $1.46 per class A share, posted in the prior-year period.

The S&P Capital IQ consensus normalized EPS estimate for the fiscal first quarter was $1.27.

Adjusted net income for the quarter excluded special items related to equity investment gains and losses, amortization of acquired intangible assets, and nonrecurring acquisition-related costs. These adjustments balanced out and led to no difference in GAAP and adjusted earnings for the quarter.

Net revenues for the quarter totaled $5.69 billion, compared to $6.05 billion reported in the year-ago quarter.

Payments volume grew 5% on a constant-currency basis year over year, while cross-border volumes fell 21%. The company's total processed transactions for the fiscal first quarter were 39.2 billion, marking a 4% increase from the prior-year period.

In addition, the company's board on Jan. 26 authorized a new $8.0 billion class A common stock buyback program.

The company is not providing an outlook for fiscal year 2021.