Visa, the world's largest credit and debit card company, reported quarterly earnings that topped Wall Street estimates on Wednesday, sending shares nearly 6 percent higher in after-hours trading.
Payments' volume growth, on a constant dollar basis, rose 11 percent, year-over-year, to $1.2 trillion during the quarter, while total processed transactions grew 9 percent, year-over-year, to about $17 billion.
Service revenue, which is generated from clients' transaction fees, rose to $1.5 billion, up from $1.39 billion in the year-earlier period. However, the company paid more to form client relationships. Its loss from client incentives widened to $768 million from $680 million a year ago.
The company reported fiscal-fourth quarter earnings of $2.18 per share, ex-items, on $3.23 billion in revenue, beating forecasts for earnings of $2.10 a share on $3.19 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company noted that its near-term outlook remained cautious, citing the modest pace of the economic recovery, Ebola and low currency volatility as possible headwinds.
Looking ahead, Visa said fiscal full-year 2015 revenue growth would be in the low double digits, which was slightly better than Wall Street's expectations.
On the other hand, the company expects fiscal full-year 2015 earnings to grow in the "mid-teens," which was in line with analysts' estimates.