Wednesday
October
01
2014
5:19 pm
Weather

  Home
  Local News
  State / National / World
  Sports
  Opinion / Letters
  Business
  Arts / Entertainment
  Lifestyle
  Obituaries
  Calendar
  Submit Event
  Comics / Games
  Classifieds
  DJ Designers
  Archives
  Advertise With Us
  About Us
 
 
 
 

Check out our archive of Dining Guides - Yum!

Visa’s 2Q profit jumps 26 percent as payments grow
April 25, 2014, 05:00 AM By Alex Veiga The Associated

Visa Inc.’s profit jumped 26 percent in its fiscal second quarter from a year earlier as the company benefited from strong growth in payments volume, service revenue and a one-time tax gain.

The latest earnings exceeded Wall Street estimates, but revenue fell slightly short. Management said Thursday that revenue growth was hurt during the January-March quarter by a stronger U.S. dollar and one-time items.

The company projects that the same factors will have a slightly more pronounced impact on revenue growth in the third quarter, but added that it expects revenue growth will rebound in the company’s fiscal fourth quarter.

Shares of Visa fell almost 4 percent in after-hours trading.

Foster City-based Visa is the world’s largest processor of debit and credit card payments. As such, it benefits from heightened consumer spending, and its results are closely watched because they can be a window into the buying habits and financial health of consumers.

An unusually bitter winter sent factories, hiring and consumer spending into hibernation earlier this year, but signs emerged last month that consumers started spending more. U.S. retail sales rose last month by 1.1 percent.

Visa’s Chief Financial Officer Byron Pollitt said on a conference call with Wall Street analysts that the Easter holiday and better weather helped boost U.S. payment volume growth 12 percent in the first 21 days of April.

“So as we get back to more normal periods post-Easter and post-weather, I think we’ll see a more normalized growth rate and one that may very well have some pent-up demand fueling it,” he said.

In the first three months of the year, all credit and debit card transactions made on Visa’s network grew 4.7 percent to $1.73 trillion versus the same period last year. Of that, $690 billion came from U.S. transactions, a gain of about 8 percent.

All told, the company processed 15.4 billion transactions during the quarter, up 11 percent from a year earlier.

That helped boost Visa’s service, data processing, international transaction and other revenue for the quarter. At the same time, the company spent slightly more on client incentives.

In all, Visa’s net income improved to $1.6 billion, or $2.52 per share, for the three months that ended March 31. That compares with net income of $1.3 billion, or $1.92 per share, a year earlier.

Excluding the tax benefit, the company earned $2.20 per share in the latest quarter.

Operating revenue rose to $3.16 billion from $2.96 billion a year earlier.

Analysts polled by FactSet, on average, forecast earnings of $2.18 per share on revenue of $3.19 billion.

Visa expects fiscal 2014 net revenue growth to range between 10 percent and 11 percent, citing the impact of currency exchange. It also affirmed its previous prediction for earnings growth.

Shares of Visa ended regular trading up 58 cents at $209.40. The stock slid $8.10 to $201.30 in after-hours trading. The shares are down nearly 6 percent this year through the end of regular trading Thursday.

 

 

Tags: percent, revenue, growth, quarter, billion, company,


Other stories from today:

 

 
Print this Page Print this Page  |  Bookmark and Share
<< Back
 
Return To Archives
 
  


 
 
 
Daily Journal Quick Poll
 
What do you think of the new statewide plastic bag ban?

It's great, we need to get rid of them
Doesn't matter around here, they are already banned
Don't like it
Hope it starts a nationwide trend
Don't like it, but whatever

 

 
 
 
 
 
 
Power restored after vehicle crash causes outage
  San Mateo police are reporting power has been restored after an outage caused by a low-spe..
U.S. stocks drop sharply; Airlines sink
NEW YORK — The stock market sank Wednesday, with the Dow Jones industrial average falling 250 poin..
Secret Service chief resigns after security lapses
WASHINGTON — Secret Service Director Julia Pierson resigned Wednesday, a day after bitingly critic..
Truck deals help boost U.S. auto sales in September
DETROIT — Big discounts on pickup trucks helped keep U.S. auto sales strong in September. The p..
Hong Kong protesters threaten to occupy buildings
HONG KONG — Student leaders of Hong Kong's pro-democracy protests warned that if the territory's t..
More >>  
 
 
  
 
  
 
©2014 San Mateo Daily Journal
San Mateo County courts