2017.07.2100:08:00UTC+00Visa Raises Earnings Forecast as Results Beats Profit Estimates

Visa Inc. lifted its financial targets for the year as its quarterly results exceeded Wall Street expectations, propelled by a higher number of transactions.

The world's biggest payments network operator has benefited from increased consumer spending in the United States as well as results from Visa Europe, which it bought last June for nearly $23 billion.

Profit soared to $2.06 billion, or 86 cents per Class A share, from $412 million, or 17 cents per share, a year earlier when results were hurt by charges related to the acquisition of its European operations. Net operating revenue increased 26 percent to $4.57 billion.

Operating expenses increased by 31 percent after adjustments, hugely tied to the Visa Europe acquisition that the company completed in June 2016.

Shares of Visa, which have been trading at an all-time peak, climbed by 1.2 percent to $99.37 after hours.

Visa also lifted its forecasts for full-year earnings and revenue. The San Francisco-based company said it currently expects annual adjusted earnings a share to increase nearly 20 percent, higher from an earlier expectation of growth in the mid-teen percentage digits.

Visa forecasts net revenue to increase around 20 percent in the year ending September 30, having earlier expected a 16 to 18 percent rise.