Visa profits top estimates for consumer spending recovery According to Reuters
© Reuters. FILE IMAGE: The credit card seen in front of the Visa logo shown in this illustration was taken July 15, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) -Visa Inc beat market estimates for quarterly profit on Tuesday as a rebound in consumer spending after the easing of COVID-19 restrictions boosted transaction volumes at the payment processor. The world’s largest math.
The results sent shares of Visa (NYSE:) up 4% in extended trading and echoed upbeat comments from major banks like JPMorgan Chase & Co (NYSE:) about the strength of the economy. America in the face of high inflation and the Ukraine Conflict.
Visa says its payment volume grew 17% in the first three months of 2022, with cross-border volumes up 38%.
“The effects of the Omicron variant were short-lived and the global economic recovery that began mid last year continues,” President and CEO Alfred Kelly said in the results announcement. .
Net income rose to $3.6 billion, or $1.70 per share, from $3 billion, or $1.38 per share, a year earlier. According to IBES data from Refinitiv, analysts were expecting a figure of $1.65 per share.
Competitor American Express (NYSE:) also reported a strong recovery in spending last week that helped it beat quarterly profit expectations.
However, Visa’s operating expenses jumped 11% to $2.4 billion as the company spent more on paying employees in a tight labor market.