26.04.201800:11:00UTC+00Visa Beats Quarterly Profit Estimates, Lifts Full-Year Earnings Projection

Visa Inc. surpassed Wall Street estimate for quarterly profit and lifted its full-year earnings estimate, as more customers use credit cards globally.

Visa, like its smaller peers, gets majority of its revenue via transaction fees, which are earned every time a customer swipes their credit or debit card on the firm's network.

The world's biggest payments network has seen card payments rise due to higher U.S. consumer spending and increasing oil prices. Higher gas prices equates to a higher dollar volume in transactions fees for Visa.

The firm reported payments volumes increased 11 percent to $1.99 trillion on a constant dollar basis for the second quarter. The U.S. accounted for around 43 percent of the overall amount. Cross-border volumes increased 11 percent on constant dollar basis.

The company now expects full-year adjusted earnings to expand at the high end of a mid-20s percentage digit estimate. Visa expects double-digit growth in the third quarter, due to personnel costs, increased investments and the upcoming FIFA World Cup in Russia, in which the firm is an official payment services partner.

Total operating expenses in the second quarter increases 4 percent to $1.74 billion. Its net operating revenue increased 13 percent to $5.07 billion in the quarter ended March 31.

Net income edged up to $2.61 billion from $430 million a year prior. Earnings per Class A shares advanced to $1.11 from 18 cents a year earlier. On average, analysts had projected earnings of $1.02 per share.

Visa's shares rallied 2.7 percent to $124.52 in extended trading.