Visa profit climbs on cross-border growth, beating estimates

VISA reported a fiscal first-quarter profit that exceeded Wall Street estimates as the world’s biggest payments network posted double-digit increases in cross-border volumes and processed transactions.

Adjusted net income rose 11 per cent to US$5.46 billion, or US$2.75 a share, the San Francisco-based company said on Thursday in a statement. That beat the US$2.66 average estimate of analysts surveyed by Bloomberg.

Net revenue for the quarter ended Dec 31 climbed 10 per cent to US$9.51 billion. Cross-border volumes increased 16 per cent and processed transactions rose 11 per cent.

The results “reflected healthy spending during the holiday season,” chief executive officer Ryan McInerney said in the statement. 

Shares of Visa rose 1.4 per cent to US$348 in extended trading at 4.11 pm in New York. The stock had gained 24 per cent in the past 12 months, trailing the 32 per cent advance for the S&P 500 Financials Index. 

Earlier on Thursday, rival Mastercard also posted a profit that beat estimates, fueled in part by better-than-expected revenue growth.

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On Tuesday, Visa announced a new partnership with Elon Musk’s X as the social-media network aims to expand its financial services offerings.

Visa will help consumers load money into their digital wallets and link debit cards to enable transactions between X Money users. BLOOMBERG