(Bloomberg) -- Visa Inc., the world’s largest payments network, got a boost from consumers outside the U.S. even as total spending on its cards missed analysts’ estimates.
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Growth in overseas spending on Visa cards bounced in the fiscal third quarter, rising 7%, the company announced Tuesday. That beat the 6.65% gain that analysts expected.
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Key Insights
- Investors keep a close eye on growth in cross-border spending, which produces higher fees for San Francisco-based Visa. Total spending on the firm’s cards climbed to $2.23 trillion, missing the $2.28 trillion average of 11 analyst estimates compiled by Bloomberg.
- The company had to spend more to lure retailers and banks and help drive consumer spending to its network. Visa set aside $1.55 billion on client incentives in the fiscal third quarter, a 12% increase, compared with the $1.63 billion average of analyst estimates.
- The firm continues to expect revenue to climb by a percentage in the “low double digits,” while profit should climb by a percentage in the “low twenties.” Operating expenses in the firm’s fiscal 2019 should increase in the “low single digits.”
Market Reaction
- Visa fell as low as $176.52 in extended trading in New York before recovering most of the loss. The firm’s shares have gained 37% this year, outpacing the 32% advance of the 67-company S&P 500 Information Technology Index.
Learn More
- “Visa had an excellent third quarter in terms of accelerating business growth while advancing our strategy through acquisitions, investments and partnerships,” Chief Executive Officer Al Kelly said in the statement.
- Read the full statement here.
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