By Michael Dabaie

 

Visa Inc. shares were up 2% to $231.82 to lead DJIA gainers in Wednesday morning trading after the company said operational metrics in May were consistent or better than April versus fiscal 2019 levels.

The payment services company Tuesday afternoon said in a Securities and Exchange Commission filing that for U.S. payments volume in May, credit continued to improve, up three points from April as compared with 2019 levels, while debit growth remained elevated at 151% of 2019.

"As we began to lap the most significant Covid-19 impacts starting in March 2020, year-over-year growth rates were not reflective of the underlying trend, therefore performance metrics relative to fiscal 2019 have also been provided," Visa said in the filing.

Compared with fiscal 2019 levels, operational metrics in May were generally consistent or better than April levels, the company said.

While travel spend was still below 2019 levels, it has steadily improved over the last several months relative to 2019, expanding about 30 points from January through May, Visa said.

International market payments volume trends in May from the same period in 2019 were stable to April trends, Visa said. The exception to this was India, which continued to slow, and several other Asian countries that were affected by new Covid-related restrictions, the company said.

In Europe, many countries improved versus 2019 levels with the relaxing of Covid-related restrictions, Visa said in the filing.

The payments volume update points to normalization, Wedbush said in a note.

"The market is likely underestimating the margin/earnings accretion from a full cross-border/travel recovery" Wedbush said.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

June 02, 2021 11:54 ET (15:54 GMT)

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