Visa's adjusted profit jumps 27 percent
- Author: Zachary Reyes Apr 23, 2017,
Apr 23, 2017, 14:47
Visa's shares surged 2.1% to $93.09 after the close of regular trading in NY.
Visa CEO Alfred F. Kelly, Jr., said, "In the face of geo-political uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across almost every part of our business". Processed volumes, when adjusted for Visa Europe, had normalized growth of 12 percent. Also, EVP William M. Sheedy sold 125,372 shares of Visa stock in a transaction that occurred on Monday, February 6th. Callahan Advisors LLC now owns 7,782 shares of the credit-card processor's stock worth $644,000 after buying an additional 500 shares in the last quarter.
All references to earnings per share assume fully-diluted class A share count, inclusive of series B and C convertible participating preferred stock, unless otherwise noted.
Other institutional investors also recently bought and sold shares of the company.
Net income, including a one-time charge of $1.5 billion and $192 million related to the company's purchase of Visa Europe, dropped 75% to $430 million.
Visa has reported better-than-expected quarterly earnings and said it expects full-year profit at the high end of its forecast. Moreover, the company noted a 12% increase total process transaction growth in Europe compared to previous year.
The company said total payments volume jumped 37.2 percent to $1.73 trillion in the second quarter ended March 31, on a constant dollar basis. This represents an increase of approximately 625% compared to the average daily volume of 6,107 put options.
The world's largest payments network operator said its revenue rose 23% driven by the inclusion of unit in Europe and continued growth in payments volume, cross-border volume, and processed transactions. The business earned $4.48 billion during the quarter, compared to analysts' expectations of $4.29 billion. The consensus estimates are calling for $3.32 in EPS and $17.79 billion in revenue for the 2017 fiscal year. Client incentives, which are a contra revenue item, were $1.0 billion and represent 18.7% of gross revenues. The credit-card processor reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.78 by $0.08.
Net income fell to US$430 million or 18 cents USA per Class A share in the second quarter, from US$1.71 billion or 71 cents U.S. per Class A share, a year earlier, reflecting a US$1.5 billion one-time charge related to Visa Europe. Callahan Advisors LLC boosted its position in Visa by 6.9% in the third quarter. Analysts on average had expected $4.29 billion.Visa's stock - a Dow component - had climbed 12.3 percent in the 12 months through Thursday. Sullivan Bruyette Speros & Blaney LLC now owns 4,601 shares of the credit-card processor's stock valued at $359,000 after buying an additional 28 shares during the period. Shareholders of record on Friday, May 19th will be issued a $0.165 dividend. It expects revenue growth for the fiscal year to be on the high end of the 15% to 18% range.
Visa Inc. (Visa) is a payments technology company that connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments.