Visa posts lower 4Q profit; beats Street views
LOS ANGELES (AP) — Visa Inc.'s profit fell about 10 percent in its fiscal fourth quarter, weighed down by one-time litigation expenses.
But the latest results beat Wall Street expectations, and shares of the Foster City, California company rose in extended trading on Wednesday.
Visa's results are closely watched because they can be a window into the buying habits and financial health of consumers, and the world's largest processor of debit and credit card payments said that payments on its system rose 11 percent to $1.2 trillion in the July-September quarter versus a year earlier. Consumers are spending more at retailers as unemployment drops.
Visa reported earnings of $1.07 billion, or $1.72 per share, for the three months ended Sept. 30. That compares with net income of $1.19 billion, or $1.85 per share, a year earlier.
Excluding the impact of the $450 million litigation provision and other one-time costs, Visa's earnings came to $2.18 per share.
The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $2.11 per share.
Revenue rose 9 percent, to $3.23 billion from $2.97 billion. Analysts expected $3.19 billion.
Visa shares added $9.14, or 4.3 percent, to $223.80 in extended trading. They closed Wednesday at $214.66, down nearly 4 percent in 2014.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. V stock research report from Zacks.
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