Visa recently released its financial results for the fiscal third quarter, showing growth in both earnings and sales. Here are the key details:
Profit
The digital-payments company recorded a profit of $4.16 billion, or $2 a share, for the quarter ending June 30. This is an increase compared to last year’s profit of $3.41 billion, or $1.60 a share.
Adjusted Earnings
After removing one-time items, Visa’s adjusted earnings were $2.16 a share. Analysts surveyed by FactSet had expected adjusted earnings of $2.11 a share.
Revenue
Visa’s revenue saw a rise to $8.12 billion from last year’s $7.28 billion in the same period. The revenue exceeded analyst estimates of $8.06 billion, according to FactSet.
Key Factors to Consider
Payments
During the quarter, payment volumes, representing the total dollar amount of purchases, increased by 9%. This growth is slightly lower than the 10% in the previous quarter and 12% from the same quarter last year.
Travel
Cross-border volumes experienced a significant increase of 17%. CEO Ryan McInerney credited this growth to the ongoing recovery in travel and summer tourism.
Transactions
Despite consumer spending pressures, Visa reported a 10% increase in processed transactions during the quarter. This suggests that consumers continue to use their Visa cards regularly. The previous quarter saw a 12% increase in transactions.