FOSTER CITY, Calif. (AP) — Visa Inc. said Thursday that its profit climbed 11 percent in its fiscal third quarter versus a year earlier, aided by solid growth in payments volume, service revenue and transactions.
The payments processor's latest financial results beat or matched Wall Street expectations. But its stock slid 3 percent in extended trading after the company tempered its earnings outlook for the year, citing issues including a stronger U.S. dollar and slow growth in cross-border transactions, or when someone uses a Visa card outside the country where it was issued.
In a conference call with Wall Street analysts, Visa's Chief Financial Officer Byron Pollitt noted that the company is guardedly optimistic that the slowing of cross-border volume growth has bottomed.
"In short, we are approaching 2015 bullish on the long term but cautious in the short-term," Pollitt said. "While we expect U.S. and international payment volume growth to remain healthy, we have not yet seen acceleration in global economic growth."
Foster City, California-based Visa is the world's largest processor of debit and credit card payments. As such, it benefits from heightened consumer spending, and its results are closely watched because they can be a window into the buying habits and financial health of consumers.
In the April-June quarter, the volume of credit and debit card transactions made on Visa's network grew 6 percent to $1.84 trillion. Of that, $748 billion came from U.S. transactions, a gain of about 9 percent.
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