Visa Inc. (NYSE:V) shares are trading slightly below the previous close in the pre-dawn trading hours. Shares are currently down about 2% at 89.97 per share. The decline in share price in extended hours trading comes after Visa reports a 14% increase in profit but fell short of Wall Street analyst expectations.
Visa announced that the credit and debit card company earned $880 million, or $1.27 per share for the company’s fourth quarter that ended on September 30. Revenue for the same period rose to $2.38 billion from $2.12 billion during the same period in 2010. Analysts had expected a profit of $1.25 per share.
Visa missed out on analyst expectations with revenue falling just short of the $2.40 billion forecast by Wall Street. Visa has been trying to get merchants to stay with the company through an incentive program. These incentives have cost the credit card giant $576 million and was the leading reason for Visa missing Wall Street’s forecast.
Visa is continuing a share repurchase plan and the board of director recently approved another $1 billion toward the repurchase program. To date over 43 million shares have been purchased under the buyback program.
About Visa Inc:
Visa Inc. operates retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities.