Investing.com -- Shares in Visa Inc (NYSE:V) surged by nearly 6% in after-hours trading after one of the world's largest credit card companies posted strong third quarter earnings on Thursday afternoon.
Visa, which was founded in 1958 in Fresno, Calif., saw its revenues increase by more than 11% for the quarter on a year-over-year basis from $3.16 billion to $3.52 billion. As a result, net profits rose to $1.7 billion or 0.69 per Class A share versus $1.36 billion or 0.54 per share last year at this time. When the global financial services company excluded an adjustment related to the fair value of a put option from its Visa Europe division, it said its earnings per share increased to 0.74 during the quarter.
Analysts expected revenues for the quarter of $3.36 billion on earnings of 0.59 per share.
“We continue to deliver solid financial results and operating metrics without the help of an improving economic environment. Strong underlying fundamentals continue to offset the drag from geopolitical tension and the strengthening dollar on our business,” Visa, Inc. CEO Charlie Scharf said in a statement.
The company also said in a statement that the results factor in a tax benefit of $280 million, which arose from the successful resolution of uncertain tax positions with taxing authorities.
For the remainder of the year, Visa reaffirmed full-year guidance of an annual operating margin in the mid-60s and an annual cash flow of above $6 billion.
Shares in Visa rose 4.23 or 5.90% to 75.88 in after-hour trading.