Visa is raking in money as people charge more to their credit cards.
The company reported better-than-expected quarterly results on Thursday on the back of a rise in consumer spending. Visa also said it would buyback $5 billion in stock.
Shares, which are up 19% this year, jumped 3% in after-hours trading.
During the fiscal second quarter, the total volume of payments processed by Visa surged 37% to $1.7 trillion. That partly reflects Visa’s decision to bring its European business back into the fold. The number of transactions made with a Visa card surged 42% to 26.3 billion transactions. However, that would’ve been a 12% rise in transactions if the European business were included in the results from a year ago.
“In the face of geo-political uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across nearly every part of our business,” said CEO Alfred Kelly, Jr. in prepared remarks.
Overall, net income tumbled to $430 million, or 18 cents per share, from $1.7 billion, or 71 cents per share, a year earlier. Excluding certain items, including charges related to the reorganization of the Europe business, earnings came in at 86 cents per share. That topped the 79 cents that Wall Street analysts were looking for.
Revenue surged 23% to $4.47 billion, beating analyst estimates of $4.31 billion.
Credit card debt has been on the rise and American Express also said it benefited from an 8% rise in consumer spending during its latest quarter.