(Reuters) -Visa’s third-quarter revenue growth fell short of Wall Street expectations as steep borrowing costs limited consumer spending, sending shares of the world’s largest payments processor down 2.1% in extended trading.
The U.S. Federal Reserve’s efforts to curb inflation have taken interest rates to their highest since the global financial crisis of 2008, stretching the budgets of lower-income Americans who live paycheck to paycheck.
Credit card giant American Express also missed expectations for second-quarter revenue last week.
Visa’s quarterly net revenue of $8.90 billion came in below analysts’ estimates of $8.92 billion, according to LSEG data.
Still, its payments volume rose 7% in the quarter on a constant dollar basis, while cross-border volumes excluding transactions within Europe jumped 14%, signaling robust international travel demand.
The company’s processed transactions jumped 10% in the quarter.
Visa expects net revenue growth in the “low double-digit” percentages for the fourth quarter ending Sept. 30, compared with 10.6% last year. The company also reaffirmed its annual profit and revenue growth forecasts.
Visa earned $2.42 per share on an adjusted basis for the third quarter, in line with expectations.
Rival Mastercard’s results, due next week, will cap off the reporting season for the sector.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath)
Comments