Visa profit falls on low oil prices, strong dollar

Shares of the company, a Dow Jones Industrial Average component, fell about 1.7 percent in extended trading.

"The negative impacts from the strengthening of the U.S. dollar and lower gasoline prices continued to exert pressure on revenue growth ...," Chief Executive Charlie Scharf said in a statement.

The dollar <.DXY> has gained about 22 percent in the past 12 months against a basket of major currencies.

VISA (V.NY)s cross-border volume growth, where the issuing country is different from the merchant country, was flat at 8 percent on a constant-dollar basis.

The company earns international transaction revenues through cross-border transactions and currency conversion, making it sensitive to foreign exchange fluctuations.

International transaction revenues accounted for about 28 percent of the total operating revenue in the quarter.

Visa's revenue was also weighed down by lower oil prices, as customers get more gasoline for the buck. Gas bills account for about 7-8 percent of the company's U.S. transaction volume, according to analysts.

The company's net income fell slightly to $1.55 billion for the quarter ended March 31 from $1.60 billion a year earlier. On a per Class A share basis, earnings were flat at 63 cents.

Operating revenue rose to $3.41 billion from $3.16 billion.

Analysts on average had expected earnings of 62 cents per share on revenue of $3.34 billion for the company's second fiscal quarter, according to Thomson Reuters I/B/E/S.

Up to Thursday's close, Visa's shares had gained about 30 percent in the last 12 months.

(Reporting by Amrutha Gayathri in Bengaluru; Editing by Robin Paxton and Sweta Singh)

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