By Nikhil Subba
(Reuters) - Visa Inc
Shares of Visa, the world's largest payments network operator, were up 2.5 percent at $93.45 in trading after the bell, after it also announced a $5 billion share buyback programme.
The company said total payments volume jumped 37.2 percent to $1.73 trillion in the second quarter ended March 31, on a constant dollar basis.
San Francisco-based Visa, like rival MasterCard
Payments volume in the United States, Visa's biggest market, increased 11.7 percent on a constant dollar basis, helped both by major portfolio contracts as well as a stronger economy.
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A healthier U.S. economy, which has seen strong jobs growth and rising incomes in the first quarter of 2017, bodes well for consumer spending - a key economic indicator for payments processors like Visa.
The trends, while boosting quarterly profit and revenue, also helped Visa update its full-year forecast. The company now expects adjusted profit at the high end of its forecast for a mid-teens percentage point increase.
Visa also said it expects full-year revenue at the high end of its forecast for a 16-18 percent increase.
Net income fell to $430 million or 18 cents per Class A share in the second quarter, from $1.71 billion or 71 cents per Class A share, a year earlier, reflecting a $1.5 billion one-time charge related to Visa Europe.
Net operating revenue rose 23.5 percent to $4.48 billion. Analysts on average had expected $4.29 billion.
Visa's stock - a Dow component - had climbed 12.3 percent in the 12 months through Thursday.
(Reporting by Nikhil Subba in Bengaluru; Editing by Sai Sachin Ravikumar)
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