Visa has continued its good run in the last quarter. Revenue rose 26 percent to 4.6 billion dollars in the three months to June, the San Francisco-based company reported on Thursday after the US stock market closing.
Net income rose from 412 million to 2.1 billion dollars. However, the figures are not comparable due to special costs associated with the acquisition of Visa Europe a year ago. However, according to the company’s own figures, Visa Europe also grew significantly as it generated $371 billion in payments volume.
The figures surpassed the analysts’ expectations who were looking for earnings of 81 cents a share on revenue of 4.36 billion dollars. The stock rose by about one percent after-hours.
Visa shares marked record high on Wednesday, exchanging hands at levels not seen since its market debut in March of 2008. Since the beginning of the year the price has already increased by more than 25 percent, beating the Dow Jones industrial average’s 9 percent gains.. Visa earns on the charges incurred when shopping with credit cards. Competitor American Express had reported a sharp drop in earnings the previous day. Mastercard is scheduled to present its numbers in a week.
The world-renowned financial services provider has benefited from increased consumer spending over the past three months, helped by the takeover of Visa Europe. The company once again benefited from the shift of consumer spending from cash to electronic means. In terms of payment volume, a growth of almost 40 percent was measured.
The US credit card company also lifted its outlook for full-year earnings and revenue. The company said it now expects yearly adjusted EPS to see rise of about 20 percent, higher compared with prior outlook of growth in the mid-teen percentage digits. Net revenue growth is now expected to be at about 20 percent in the year ending September 30, having earlier predicted a 16 to 18 percent growth.
“As you know, our largest presence by quite a large measures in the U.K. has held up well,” CEO Alfred Kelly said on a conference call following the earnings release.