Visa (V) Charges Ahead with 15% Top Line Growth and 28% Bottom Line Growth in Q2
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Price: $371.10 +1.47%
Financial Fact:
Basic earnings per share (Note 8): 1.32
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Basic earnings per share (Note 8): 1.32
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Visa, Inc. (NYSE: V) posted solid second-quarter results after the close Thursday, but investors are initially taking a cautious tone and selling on the news.
Visa reported GAAP net income of $881 million, or $1.23 per share, which beat the consensus of $1.20. The earnings are an increase of 28% from the $0.96 reported last year.
Revenue for the quarter rose 15% to $2.245 billion, which also topped the Street's $2.23 billion estimate. Service revenue rose 24%, data processing revenue rose 13%, International transaction revenue was up 14% and other revenue, which included the Visa Europe licensing fee, fell 10%.
Client incentives were $451 million and represented 17% of gross revenue.
Payments volume growth in the quarter was up 13% from last year and total processed transactions were 12 billion.
Visa also rewarded shareholders with a new $1 billion share buyback, after repurchasing approximately 8.7 million class A shares at an average price of $72.58 per share during the quarter.
Visa affirmed that it sees annual net revenue growth of 11-15% and EPS growth of greater than 20%.
"Visa delivered a solid financial performance in our fiscal second quarter with double-digit growth in payments volume, cross border volume and Visa-processed transactions from across the globe," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "With a strong first half of our fiscal 2011 year behind us, we remain focused on driving continued transaction growth, maintaining strong financial performance and expense control discipline, and delivering value to our shareholders through share repurchase programs and dividend payments."
Shares of Visa last traded at $77.00, down about 2 percent from the $78.70 New York close.
Visa reported GAAP net income of $881 million, or $1.23 per share, which beat the consensus of $1.20. The earnings are an increase of 28% from the $0.96 reported last year.
Revenue for the quarter rose 15% to $2.245 billion, which also topped the Street's $2.23 billion estimate. Service revenue rose 24%, data processing revenue rose 13%, International transaction revenue was up 14% and other revenue, which included the Visa Europe licensing fee, fell 10%.
Client incentives were $451 million and represented 17% of gross revenue.
Payments volume growth in the quarter was up 13% from last year and total processed transactions were 12 billion.
Visa also rewarded shareholders with a new $1 billion share buyback, after repurchasing approximately 8.7 million class A shares at an average price of $72.58 per share during the quarter.
Visa affirmed that it sees annual net revenue growth of 11-15% and EPS growth of greater than 20%.
"Visa delivered a solid financial performance in our fiscal second quarter with double-digit growth in payments volume, cross border volume and Visa-processed transactions from across the globe," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "With a strong first half of our fiscal 2011 year behind us, we remain focused on driving continued transaction growth, maintaining strong financial performance and expense control discipline, and delivering value to our shareholders through share repurchase programs and dividend payments."
Shares of Visa last traded at $77.00, down about 2 percent from the $78.70 New York close.
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