Visa Post 14% Increase In 4Q Profit

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.

written by Danny Fisher

Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

© Copyright - Active Investor
Real Time Analytics