US Visa Inc., the operator of the largest US payment system, increased net profit and revenue in the third fiscal quarter, while adjusted profit and revenue exceeded market expectations.
The company said in a press release that its net income for the April-June quarter was $5.3 billion, up from $4.87 billion in the same quarter of the previous fiscal year. Earnings per share rose to $2.69 from $2.4.
Earnings excluding one-time factors rose to $2.98 per share from $2.42 per share. Analysts surveyed by FactSet had on average expected the figure to be $2.85 per share.
Visa’s quarterly revenue rose 14% to $10.17 billion from $8.9 billion a year earlier. Analysts’ consensus forecast for the figure was $9.85bn.
The volume of payments in the last quarter grew by 8% in annual terms, the number of processed transactions – by 10% to 65.4 billion. The volume of cross-border payments excluding currency fluctuations increased by 12% in April-June.
Last quarter, Visa returned about $6bn to shareholders through share repurchases and dividends. The Board of Directors approved a quarterly dividend of 59 cents per share (previously 52 cents per share).
In the current fiscal quarter, the company expects revenue growth of about 10%, as well as an increase in adjusted earnings by 17-19%.
Visa shares fell 2.3% in additional trading on Tuesday. Since the beginning of this year, the company’s capitalisation has increased by 11.2% to $689.3bn.