Visa Profit Up on Rising Payment Volume

Citing an increase in global transactions, Visa (NYSE:V) beat Wall Streets expectations Wednesday, reporting fiscal third quarter earnings of $883 million, or $1.26 a share.

Analysts had predicted earnings per share of $1.23.

Fiscal third-quarter operating revenue was $2.3 billion, which matched Wall Streets predictions.

Visa delivered another quarter of strong financial and operational performance as we benefited from growth in global payments volume, and solid cross border and processed transaction growth," Visas CEO Joseph Saunders said in a statement.

The company posted a non-adjusted profit of $1.01 billion, or $1.43 a share, compared with $716 million, or 97 cents a share, a year earlier.

San Francisco-based Visa makes its money charging banks fees for processing transactions made on their own cards. Analysts have said consumers are turning to their credit cards in greater numbers as the memory of the credit crisis of 2008 recedes. That has bode well for Visa and its main competitors, American Express (NYSE:AXP) and Mastercard (NYSE:MA).

Visa said the number of transactions processed on its network increased 11%.

In addition, the credit card industry as whole benefited earlier this year when new regulations that favored the industry were approved by the Federal Reserve.

"As we address the new regulatory landscape, we are prepared to deliver on our financial goals and remain an industry leading growth company in the global transactions space," Saunders said.

Visa also announced a new $1 billion share repurchase program.

Visa shares closed down $1.45, or 1.6%, at $87.75 during the regular trading session Wednesday.