Visa Inc.’s financial performance in the latest period beat Wall Street projections, driven by continued higher spending on Visa-branded credit and debit cards.
The largest U.S. card network by cards in circulation and number of transactions on Tuesday reported profit rose 33% to $3.1 billion in the fiscal third quarter ended June 30, or $1.37 a Class A share. Net revenue rose 11% to $5.84 billion.
Analysts surveyed by FactSet expected $1.33 a share on $5.70 billion in revenue.
Payments volume, adjusted for foreign-currency fluctuations, rose 9% in the latest period. Meanwhile, volume from cross-border transactions, which typically carry larger fees, rose 7%.
San-Francisco-based Visa paid $1.55 billion, up 13% from a year earlier, in client incentives, which are long-term contracts with merchants, clients and other partners to expand its network and increase payment volume.
The company said it now expects client incentives to represent 21.5% to 22% of gross revenue, slightly less than its previous forecast.
It still expects per-share annual profit to increase by a percentage in the low-20s and revenue to rise by a low double-digit percentage from the prior year.
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