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Visa posts beat on quarterly estimates

Visa reported Q4 estimates that topped the Street's expectations. The credit-card company posted $1.12 EPS and $5.41B in revenue, outperforming consensus estimates of $1.09 EPS and $5B in revenue. Yahoo Finance’s Myles Udland breaks down the details.

Video Transcript

SEANA SMITH: Welcome back to The Final Round. Visa is out with earnings. Myles Udland has those numbers for us. Myles.

MYLES UDLAND: Yeah, let's take a look at the quarter and the year here from Visa. The company reporting adjusted earnings per share in its fiscal fourth quarter, $1.12. That's better than the $1.09 that the Street was looking for. Revenues in Visa's fourth quarter coming in at $5.1 billion, just better than the $5 billion that the company was forecasting.

Now Visa is not providing an outlook for 2021, but giving us a bit of color on kind of how the fourth quarter played out for them and, again, in context of their full fiscal year. So the company noting that process transactions in the fourth quarter, they were up 3% and up 2% for the full year. Payments volume up 4% in the fourth quarter.

Now as you'd expect, cross-border volumes plummeting here, down 29% in the fourth quarter for Visa. Down 16% for the full year. But the company saying in its release that payments volume, cross-border volume, and process transactions all improved through the fourth quarter, the company calling it at varying stages of recovery.

And so I think, again, for a year that's been pretty challenging for Visa, they have seen things repair themselves. Again, looking at volumes of transactions, the number processed, those have gained slowly through the year. Cross-border, I mean, who knows when that kind of picks up?

But more people buying more stuff, I think, it is a trend that Visa is at least seeing in their business. And we see it across various levels of the consumer here, Seana.

ANDY SERWER: Yeah, it's a tough space though, Myles, right? Like Mastercard was a little bumpy [INAUDIBLE] came out. And then of course, there's also the possibility the Wall Street Journal is reporting about an antitrust probe with regard to their plans to buy this fintech company Plaid.

So you know, it's always difficult to sort out, you know, well, on the one hand, people aren't traveling across borders. You mentioned, on the other hand, people are staying at home and buying stuff. So I think this is a really tough one for the Street to sort of figure out. And I think that's reflected in the sort of mixed picture that you're talking about a little bit.