Visa Inc. reported card-spending growth that was more robust than Wall Street expected as consumer demand for travel and dining out remained strong last quarter.
(Bloomberg) — Visa Inc. reported card-spending growth that was more robust than Wall Street expected as consumer demand for travel and dining out remained strong last quarter.
Payments volume climbed 9% to $3.17 trillion in the fiscal third quarter ended June 30, San Francisco-based Visa said Tuesday in a statement. That beat the $3.14 trillion average estimate of analysts surveyed by Bloomberg.
Visa and rival Mastercard Inc. have gotten a boost from cardholders’ continued willingness to spend on travel and entertainment. US consumer confidence advanced to a multi-year high in July, aided by a strong job market and easing inflation, the Conference Board said earlier Tuesday.
“Consumer spending remained resilient, driving growth in payments volume and processed transactions,” Chief Executive Officer Ryan McInerney said in the statement. The results were “fueled by travel growth from the ongoing recovery and summer tourism.”
Revenue in the period rose 12% to $8.1 billion, beating the $8.06 billion that analysts predicted. Adjusted net income of $4.5 billion, or $2.16 a share, was 5 cents better than estimates.
Shares of Visa were little changed in extended trading at 4:14 p.m. in New York. The stock has gained 15% this year.
Last week, American Express Co. said volume on its network increased 8% last quarter, the weakest gain in more than two years. Purchase, New York-based Mastercard is scheduled to report results before US markets open on Thursday.
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