YEREVAN, May 3. /ARKA/. Visa Inc. (V), the world’s biggest payments network, posted a fiscal second-quarter profit that beat analysts’ estimates as consumer spending on credit and debit cards climbed.
Net income for the three months ended March 31 fell 1.7 percent to $1.27 billion, or $1.92 a share, from $1.29 billion, or $1.91, a year earlier, when there were more shares outstanding, the Foster City, California-based company said today in a statement. That beat the $1.81 average estimate of 32 analysts surveyed by Bloomberg. Net income a year earlier was helped by a one-time tax-related gain of $208 million.
Visa, led by Chief Executive Officer Charlie Scharf, increased dividends and stepped up share repurchases as the firm gained financial flexibility after joining rival MasterCard Inc. (MA) in agreeing to a multibillion settlement with merchants over card swipe fees. Visa also struck a deal in February with JPMorgan Chase & Co., the biggest U.S. card lender, to let the bank tailor payment solutions for merchants.
“To drive future transaction growth, we continue to invest in new technologies, channels and capabilities to make Visa transactions more valuable, accessible and secure,” Scharf, 48, said in the statement.
The payment processor raised its forecast for adjusted annual earnings per share growth to about 20 percent, from the “high teens” projected in February. –0–
