Visa (V) reported strong first quarter earnings that beat analyst expectations, driven by robust credit card spending reflecting ongoing consumer resilience. Net revenue for the quarter was $8.63 billion, 9% above analysts' consensus expectations, while adjusted per-share earnings came in at $2.41, also exceeding forecasts.

Yahoo Finance's Julie Hyman and Josh Lipton break down the details.

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Editor's note: This article was written by Angel Smith

Video Transcript

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JULIE HYMAN: Visa out with its earnings after the close of trading as well, beating profit expectations in its first quarter, thanks to strength in use of credit cards. In a statement, the company's CEO noting consumer spending remaining resilient. The shares, though, are down 3%. And honestly, Josh and I are trying to figure out what is going on here, because, indeed, the company's adjusted net income was $2.41 a share-- excuse me-- better than estimates. Net revenue up 9% to $8.63 billion. That was also ahead of estimates.

I'm also looking at the forecast here. Maybe there's something going on there. The company says it's right-- what it just reported was its fiscal first quarter. In its fiscal second quarter, it says revenue will be up in the upper mid to high single digit range. That is versus what analysts had been looking for just looking at the increase that they're expecting 9%. It looks like is what analysts had been predicting in that.

So that may be upper mid to high single digit, 9% could be that. Maybe it could be a little bit less than. I don't know. Operating expense growth in the low double digit and earnings per share growth in the high teens, according to the company.

JOSH LIPTON: Yeah. I think you're right to focus on the guide, because the print is solid. I mean, relative to expectations, profit beat revenue, 8.63 billion. That's a beat. Payments volumes and line operating expenses basically in line. Upbeat commentary from the CEO talking about how the consumer spending has remained resilient, he says, continues to see opportunity across consumer payments, new flows, value-added services. So I think the Street must be focused here on the forecast.

Remember, stock heading into the print, it was up about 20% over the past year. It was about 4% or 5% year-to-date. Street, remember, is a fan of this name, 39 buys, 8 holds, not a single sell.

JULIE HYMAN: Payments volume as well. I always love talking about these numbers because they're so enormous. Payments volume up more than 8% to $3.28 trillion. I mean, Visa is the largest payments network, so keep that in mind. It also said the biggest spending growth came from Central Europe, the Middle East, and Africa, as well as Latin America and the Caribbean. Those regions up about 20% from a year earlier. So that is an interesting stat as well where you look at where the growth is coming from for the company.

JOSH LIPTON: Yeah. Stock's been on a roll. Remember, just this week, it actually hit a record high of, about 273.

JULIE HYMAN: Well, that is the context then as well when you look at the drop that we're seeing right now.