Visa Inc. Exceeds Earnings and Revenue Expectations in Q3

Visa Inc., the payment-technology giant, reported impressive earnings and revenue for the fiscal third-quarter, surpassing expectations. The company achieved a net income of $4.2 billion, or $2.00 per share, compared to $3.4 billion, or $1.60 per share, in the same period last year. Adjusted earnings per share stood at $2.16, outperforming the FactSet consensus of $2.11.

Total revenue rose to $8.12 billion, up from $7.28 billion in the previous year, exceeding analysts' expectations of $8.06 billion. CEO Ryan McInerney highlighted that consumer spending remained resilient during this period of time.

Visa observed a significant increase in payment volume, with a 9% rise in the June quarter. Moreover, processed transactions also saw a boost of 10%. Cross-border volume, excluding intra-Europe transactions, experienced a substantial growth of 22%, while overall cross-border volume increased by 17%. Cross-border transactions, which include travel-related spending and cross-border e-commerce, indicate flourishing international spending.

McInerney attributed the surge in cross-border spending to the ongoing recovery and summer tourism. This reflects the optimistic outlook for the travel industry.

Visa's robust earnings provide valuable insights into the consumer-spending landscape and come shortly after American Express Co.'s release of its own results. American Express executives acknowledged healthy consumer activity among its affluent cardholders; however, spending growth witnessed a slowdown, suggesting potential challenges in the future for payment-technology companies that greatly benefited from last year's post-pandemic economic reopening.

Mastercard Inc. is set to announce its own financial results before Thursday's market opening.

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