Visa Inc. (NYSE: V) reported fiscal first-quarter 2020 results after markets closed Thursday. The credit card issuer posted quarterly adjusted diluted earnings per share (EPS) of $1.46 and revenues of $6.1 billion. In the first quarter of 2019, Visa reported adjusted EPS of $1.30 on revenues of  $5.51 billion. Consensus estimates called for EPS of $1.46 and $6.08 billion in revenue.

Earlier this month, Visa announced that it will pay $5.3 billion to acquire fintech company Plaid, a provider of a platform that links consumers to banks. The acquisition moved Visa stock up by about 2% on the day it was announced.

Operating expenses increased by $249 million (14%) compared with the first quarter of last year.

Payment volume rose 8% year over year in the quarter and processed transactions totaled 37.8 billion, an increase of 11%.

CEO Alfred F. Kelly, Jr. said:

Our fiscal first quarter 2020 reflected stable and robust business growth around the world. We continue to have great success in building and renewing partnerships and growing our acceptance network. We are excited about the recent announcement to acquire Plaid which will enhance the growth trajectory of our business well into the future.

In reaffirmed its outlook for the 2020 fiscal year, Visa said it expects revenue growth in the low double-digit range and operating expense growth in the mid-single-digit range (in nominal dollars). EPS growth is tabbed for the mid-teens. The Plaid acquisition is expected to add 0.5% to annual net revenue, and 3% to 4% to operating expenses. EPS growth is expected to take a hit of around 1%.

Analysts are looking for second fiscal quarter 2020 revenues of $6.11 billion and adjusted EPS of $1.45. For the 2020 fiscal year, the consensus estimates call for revenues of $25.46 billion and adjusted EPS of $6.20.

Visa met estimates (barely) and chipped a percentage point off its prior EPS growth estimate. Investors clearly expected more. At the stock’s current high share price, the dividend yield is a mere 0.59%. Maybe a boost there would mollify investors?

Visa’s stock traded down about 1.7% in Thursday’s after-hours session at $204.75 after closing at $208.21. The stock’s 52-week range is $133.30 to $210.13 and the 12-month consensus price target was $219.00 before the report.

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