Visa tops earnings expectations, boosts dividend

 Visa tops earnings expectations, boosts dividend

Shares of Visa Inc. gained slightly in the aftermarket session after the payments giant topped earnings and revenue estimates while boosting its quarterly dividend.

The company posted fiscal fourth-quarter net income of $3.6 billion, or $1.65 a share, up from $2.1 billion, or 97 cents a share, a year earlier. On an adjusted basis, Visa earned $1.62 a share, up from $1.12 a year prior. The FactSet consensus was for $1.56 a share in GAAP earnings and $1.55 a share in adjusted earnings.

Visa’s
V,
-0.88%

revenue grew to $6.6 billion from $5.1 billion, while analysts tracked by FactSet had been expecting $6.5 billion.

Shares were up 0.4% in after-hours trading Tuesday.

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“Our performance was driven by the continuation of the recovery in many global economies and the increased diversification of our revenue with new flows and value added services,” Chief Executive Al Kelly said in a statement.

Visa’s payment volume was up 17% in the September quarter, while processed transactions grew 21%. Cross-border volume, or volume between parties originating from different countries, increased 38% in the quarter. Cross-border volume, excluding transactions within Europe, rose 46%.

See also: How debit cards are becoming ‘a democratizing force’

The company’s board of directors approved an increase to the quarterly dividend. The new dividend will be $0.375 a share, up from $0.32 a share, and it will be payable Dec. 7 to shareholders of record as of Nov. 12.

Shares of Visa have lost 7.4% over the past three months, as the Dow Jones Industrial Average
DJIA,
0.04%

has risen 1.7% and as the S&P 500
SPX,
0.18%

has increased 3.5%.

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