Visa shares pop 2% on earnings beat

Payment services company Visa reported better-than-predicted earnings on Thursday despite headwinds from a strong U.S. dollar.

Visa beat earnings and revenue expectations for its fiscal first quarter of 2016. The company reported fiscal first-quarter earnings of 69 cents per share on revenue of $3.57 billion for the period.

Analysts had expected Visa to report adjusted earnings of about 68 cents a share on $3.62 billion in revenue, according to a consensus estimate from Thomson Reuters.

Shares of Visa were up about 2 percent after the bell.

Total payments volume rose 11 percent to $1.3 trillion on a constant dollar basis. Wall Street analysts had expected an increase in payments volume of 6.1 percent, according to StreetAccount.

U.S. payment volumes, which account for more than half of its total payment volumes, jumped 9.5 percent.

"We continue to be pleased with our financial performance given the uneven global economy and the ongoing negative effects of the strong U.S. dollar. While we continue to see relatively strong payments volume growth, these factors have meaningfully reduced our cross-border volume and revenue growth," said Charlie Scharf, chief executive officer of Visa in a statement.

Volume of cross-border transactions, in which the credit issuer's country differs from that of the merchant's, rose 4 percent on a constant-dollar basis.

That was down from an increase of 8 percent in the year-ago quarter.

Total operating revenue rose 5.4 percent to $3.57 billion.

Visa recently announced that it would acquire former subsidiary Visa Europe for approximately $23.3 billion in a deal that will give the global payments technology company a chance to cut costs over the long term and raise fees in the second-biggest card market. The price for the long-anticipated deal was higher than many had expected, but ended a period of strategic uncertainty that had dogged Visa in recent months.

Visa and Visa Europe, a cooperative of European banks with more than 500 million cards, were part of a global bank-owned network until 2007. Most of the units merged to form Visa, which went public in 2008, leaving Visa Europe as a separate entity.The deal brings all of Visa's networks under one roof again, cementing its lead over nearest-rival MasterCard.

Reuters contributed to this report.