This file photo shows a wallet containing cash and a Visa card in Surfside, Fla. Visa Inc. releases quarterly financial results on Thursday, July 23, 2015.Wilfredo Lee/The Associated Press
Visa Inc., the world's largest payments network, said profit rose 25 per cent, beating analysts' estimates, as consumer spending increased.
Net income for the fiscal third quarter climbed to $1.7-billion, or $2.78 a share, from $1.36-billion, or $2.17, a year earlier, the Foster City, California-based company said Thursday in a statement. Excluding an adjustment in the value of its Visa Europe put option, profit was 74 cents a share, beating the 58– cent average estimate of 32 analysts surveyed by Bloomberg.
Chief Executive Officer Charlie Scharf is investing in technology aimed at accelerating mobile and other forms of digital payments. The firm also is striking deals with retailers like Costco Wholesale Corp. as consumers demand better reward programs.
"Visa is better positioned than MasterCard to deliver strong company performance in 2015," Lisa Ellis, an analyst at Sanford C. Bernstein & Co., said in a note before results were released. The company faces "fewer currency and incentives headwinds," than its smaller competitor and should benefit from new product announcements, she said.
Visa shares have gained 9.5 per cent this year through the close of regular trading, compared with the 10 per cent advance of MasterCard Inc., which reports results next week.
American Express Co., the biggest credit-card issuer by purchases, said Wednesday that second-quarter profit fell 3.7 per cent as card-spending growth slowed and revenue declined. Discover Financial Services posted a 7 per cent decline in profit when it reported results on Wednesday.