Visa shares jump as earnings beat estimates
Revenue and profit, excluding one-time litigation charges, came in better than expected.
Visa’s (V) profit fell about 10% in its fiscal fourth quarter, weighed down by one-time litigation expenses.
But the latest results beat Wall Street expectations, and shares of the company jumped 4% in after-hours trading on Wednesday.
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% to $3.23 billion, up from $2.97 billion. Analysts expected $3.19 billion.
In regular trading, Visa shares fell 1% to close Wednesday at $214.66.
Source: Usatoday-Visa shares jump as earnings beat estimates
