Visa has always been one of the most reliable and reliable growth stocks in the market. As the world's largest payment processor, the company has achieved double-digit annualized income growth, and its share price has also achieved an annualized income of 28.6% from 2011 to 2020.
But 2021 is not going well for Visa. The share price was basically flat at the end of the year. As the economy staggered forward in the epidemic, the income growth slowed in the first half of the year. Although it rebounded in the third quarter, the share price was restrained by concerns about inflation, supply chain problems, new virus variants and overall sales, including the general decline of growth stocks.
In 2022, we should actually answer whether these questions will continue. After we saw Visa's financial report, the stock price rose by 5%. It should be said that it is remarkable.
Q1 revenue was 7.06 billion US dollars, higher than the market generally expected 6.79 billion US dollars; This compares to 6.56 billion in Q4 and 5.69 billion in Q1 2021.
Q1 Non-GAAP EPS is $1.81, while it is expected to be $1.70; That compares to $1.62 for 2021Q4 and $1.42 for 2021Q1.
Payments in fixed US dollars increased by 20% year-on-year, cross-border transactions increased by 40%, and processed transactions increased by 21%.
Entering January, payment data in the United States is growing and the growth rate of transactions processed is slowing down. Visa processed a total of $2.97 trillion in payments, compared with Visible Alpha's estimate of $2.88 trillion; That compares to 2.78 trillion in the fourth quarter.
Total operating expenses in the first quarter were US $2.28 billion, up 24% year-on-year.
This is the first time Visa's quarterly revenue has exceeded $7 billion, due to the faster-than-expected recovery of tourism spending and the continuous growth of industries such as e-commerce, which have been performing strongly during the pandemic. The company's revenue growth was driven by lower-than-expected incentives and higher international performance.
After all, the total amount paid by the company increased by 20%, and the transactions processed increased by 21%. Excluding intra-European transactions, the company's cross-border transaction volume increased by 51%, and the overall cross-border transaction volume increased by 40%.
Including the continuous growth of e-commerce business, the recovery rate of cross-border tourism expenditure is faster than expected, which should be the continuous support of Visa's stock price in 2022. As more and more countries relax restrictions related to the epidemic, the recovery of pent-up tourism demand will help Visa achieve performance growth.
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