Visa, based in Foster City, Calif., said in a statement Thursday that net income climbed 22% from a year earlier to $2.52 billion, as revenue rose by 9% to $4.86 billion. Excluding gains and charges stemming from the new tax law passed in December, the company's adjusted earnings per share were $1.08, exceeding the 98-cent average estimate of analysts in a FactSet survey.
Mastercard, based in Purchase, New York, said separately Thursday that revenue rose 20% in the quarter from a year earlier. Net income fell by 76% to $227 million, mostly due to an $873 million charge related to the tax act. Excluding special gains and charges, net income climbed by 28% to $1.2 billion, or $1.14 a share, according to the statement. That figure exceeded the $1.12 average estimate in a FactSet survey.
Visa CEO Alfred Kelly said in the statement that his company saw "healthy growth in all key business drivers across the globe."
"In particular, momentum accelerated in the U.S., driven by strong holiday spending and e-commerce growth," he said.
MasterCard also benefited from from "strong" holiday sales, CEO Ajay Banga told stock analysts on a conference call Thursday.
Visa shares rose 1.2% to $125.72 on Thursday. MasterCard gained 2.33% to $172.93.
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