With its most recent earnings, Visa Inc. (NYSE:V) exceeded expectations, demonstrating strong growth in consumer spending despite economic uncertainty.
Compared to the same quarter a year earlier, the company’s third fiscal quarter’s net income came in at $3.41 billion, or $1.60 per share. FactSet-tracked analysts anticipated GAAP earnings to be $1.73 per share.
On an adjusted basis, Visa (V) earned $1.98 per share, up 33% from the prior year and more than the $1.75 per share predicted by FactSet.
Analysts had predicted $7.1 billion in revenue, but it increased to $7.3 billion from $6.1 billion.
According to Chief Executive Al Kelly, Visa had a “very solid quarter” despite macroeconomic uncertainties, considerable exchange-rate headwinds, and the suspension of our business in Russia. The “resiliency of our business model” was praised by him.
Payments volume climbed by 12%, while completed transaction volume increased by 16% for Visa. Cross-border volume increased by 40%, and cross-border volume excluding intra-European transactions increased by 48%.
Kelly said that for the first time since the pandemic started in early 2020, cross-border travel volume had surpassed 2019 levels because of consumers who are back on the road and seeing different parts of the globe. “While the economic outlook is unclear, we remain confident in our ability to execute with discipline.”
In Tuesday’s after-hours trading, shares were essentially unchanged.
Visa’s profits come amid growing concern over the consumer’s condition in a shaky economy, while businesses have sent conflicting signals during this reporting season.
While executives at American Express Co. (AXP) were optimistic last week about spending trends at the high end, Walmart Inc. (WMT) lowered its earnings prediction late Monday, warning that inflationary pressures around food costs left consumers with less discretionary income for categories like clothes. According to Jeff Campbell, chief financial officer at Amex, “if you think about actual signs of stress, we don’t see any” throughout the company.
Earlier on Tuesday, Frank Bisignano, chief executive officer of merchant-acquiring firm Fiserv Inc. (FISV), stated on the company’s earnings call that “the consumer remains resilient.”
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