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
Check out what's clicking on FoxBusiness.com
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. | 278.62 | -1.87 | -0.67% |
"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.