Visa profit jump, boosts dividend, shares rise
Despite surging inflation across the globe, the financial payments company says it doesn't see a change in purchasing behavior
Visa shares rose as high as 2% in extended trading after reporting a 16% jump in quarterly profit.
The company also announced a dividend increase and a new stock repurchase plan.
The financial services company says earnings were helped by higher usage of its global namesake payment network.
The San Francisco-based company said it earned a profit of $3.94 billion, or $1.86 a share.
VISA, MASTERCARD DRAW NEW GOVERNMENT SCRUTINY OVER DEBIT-CARD ROUTING
Visa credit cards are arranged on a desk. (Justin Sullivan/Getty Images / Getty Images)
Excluding one-time charges, the company earned $4.09 billion, or $1.93 a share. That's better than the $1.87 per share that analysts were forecasting, according to FactSet.
Visa processed $2.929 trillion in payments on its network in the July to September quarter, up 10.5% on a constant-dollar basis.
Since the pandemic, there's been a global move to use electronic payments for more routine purchases, such as groceries.
A Visa credit card stands on a reflective surface. (Getty Images / Getty Images)
AVERAGE CREDIT CARD RATE HIGHEST SINCE 1996
Visa said that its has seen no change in consumer purchasing behavior yet, despite the surge in inflation across the world.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| V | VISA INC. | 331.11 | +4.08 | +1.25% |
"As we look ahead, while some short-term uncertainty exists, we remain confident in Visa’s long-term growth trajectory across consumer payments, new flows and value added services," Visa CEO Al Kelly said in a statement.
CLICK HERE TO READ MORE ON FOX BUSINESS
Visa's board of directors approved an increase to the company's quarterly dividend to 45 cents per share. The board also approved a new $12 billion stock buyback program, replacing its previous program.
The Associated Press contributed to this report.