Visa Inc (NYSE:V) released its earnings report for the quarter beginning April 1 this afternoon after the closing bell rang in New York. The credit card company showed earnings per share of $1.88 for the three months ending June 30 this afternoon. The company’s revenue in the second quarter of the year amounted to $3 billion according to the report.
In the run up to the earnings announcement analysts following Visa Inc (NYSE:V) were looking for earnings of $1.80 per share for the period on revenue totaling $2.9 billion. In the third quarter, which is how Visa records the three months through June, of 2012 Visa earned $1.56 per share on revenue of $2.6 billion. Today’s market saw shares in the payments processor slide down to finish the day’s trading at $186.77 per share.
Visa Inc (NYSE:V) and its closest rivals Mastercard Inc (NYSE:MA) and American Express Company (NYSE:AXP) have all outperformed the market so far in 2013. Visa itself has gained more than 22% so far this year while Mastercard and American Express have gained 20% and 30% respectively.
The performance of the credit card industry means a couple of things. First it means that consumer confidence in the United States, and worldwide to a lesser extent, is increasing. Second it means that while Americans are willing to spend more in 2013, they’re still willing to take on personal debt in order to do it.
Mastercard Inc (NYSE:MA) which is the major competitor to Visa Inc (NYSE:V) in the credit card industry, will not release its earnings until this day next week. It is expected, however, that the company’s results will follow the route set by Visa Inc (NYSE:V) in this report. Over the long term, looking at the company’s stock price, the firms are much more responsive to changes in the general economy and consumer habits than they are to intra-sector competition.