(Reuters) – Visa’s second-quarter profit beat Wall Street forecasts on Tuesday as consumers shrugged off concerns about a slowing economy and high interest rates and turned to cards for travel, entertainment and eating out.
Shares of the world’s largest payments processor rose 2.8% in extended trading after the results were released.
U.S. consumer spending remains remarkably resilient despite higher, longer-term interest rates, with Americans still eager to spend money on big-ticket purchases and international travel.
Visa (NYSE:) payments volume grew 8% in the quarter. Cross-border travel excluding intra-European travel, a measure of international travel demand, jumped 16%.
Net revenue for the quarter rose 10% to $8.8 billion. Transactions processed grew 11% in the second quarter.
Credit card giant and processor American Express (NYSE:) First-quarter earnings beat expectations last week, helped by strong spending by wealthy consumers.
Visa’s adjusted earnings per share of $2.51 beat analysts’ average expectations of $2.44, according to LSEG data.
Analysts expect payments companies to maintain growth as bets on an economic slowdown ease. The summer season is also typically busy with travel volumes as people fly for vacation both internationally and within the United States.
Visa expects net revenue growth to be in the “low double digits” for the current quarter ending June 30.
The company kept its 2024 revenue growth forecast unchanged at the “low double-digit level.”