Skip navigation
Watchlist Sponsored By :


Current DateTime: 11:22:04 25 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 11:22:04 25 Nov 2009
LinksList Documentid: 33793611
  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?


Current DateTime: 11:22:04 25 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
By: CNBC.com with Wires | 28 Apr 2008 | 06:56 PM ET
Text Size

Visa, reported earnings that easily outstripped expectations in its first ever results as a publicly traded company, but the company's shares declined in extended trading on a cautious outlook.

Visa Card, visa earnings
Flikr/liewcf

On an adjusted basis, the company said it earned 52 cents a share in its fiscal second quarter on sales of $1.5 billion.

Visa went public on March 19, only two weeks before the quarter ended.

Analysts polled by Thomson Financial, on average, forecast earnings of 44 cents a share on revenue of $1.42 billion.

The company projects earnings growth of 20 percent over the next three years. Analysts were looking for earnings-per-share growth of 28 percent in the year ending September 2009.

Visa said it expects annual net revenue growth of 11 percent to 15 percent over 3 years.

Visa shares [V  Loading...      ()   ] fell more than 3 percent in extended trading after climbing 0.71 percent to $75.63 Monday. Since their public debut, they've risen 72 percent.

Operating income fell during the quarter, to $349 million from a pro forma $394 million in the same quarter in 2007, hurt by higher advertising and marketing expenses and more money being set aside for litigation.

Operating revenue rose to $1.45 billion from $1.19 billion.

Visa, a credit card processor owned by a consortium of banks, went public in history's biggest ever IPO at a price of $44 a share — above expectations — raising nearly $18 billion.

Visa designated nearly $12 billion of the proceeds to buy back shares from banks that essentially co-owned the company. JPMorgan Chase benefited the most, earning $1.5 billion from the IPO. Some other big gainers were Bank of America, which pulled in $776 million from the IPO; National City, which got $532 million; and Citigroup, which raked in $349 million.

Those windfalls came at a serendipitous time for the financial services industry, which has been swallowing huge losses due to poor bets on the mortgage market and preparing for more borrowers to stop repaying their debt.

But unlike most of its peers, Visa's biggest risk going forward is not connected to the deteriorating credit climate. Visa's member banks are the ones lending money to cardholders, not Visa.

Instead, the card processor faces legal worries. Visa set aside $3 billion in IPO proceeds for potential liabilities in lawsuits alleging Visa conspired to stifle competition and fix prices. A case brought by Discover Financial Services is scheduled to go to trial in September, after Visa resolved a similar suit with American Express last year.

Most analysts, however, have been fairly optimistic about the company's prospects. Before Visa reported earnings late Monday, several analysts issued positive ratings for the company, a brand that was launched in 1977 and now has operations in 170 countries.

Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
  • Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
  • Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
  • More shoppers than ever plan to comparison-shop this season. Who will benefit?
  • It may be the most unusual guide to business you'll read.
  • Cut Credit cards
  • How can you get out of debt and back on the road to recovery? Follow these ten steps.
ADD COMMENTS
Remaining characters


Current DateTime: 12:56:54 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:38:04 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 11:10:58 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:38:10 25 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters