Visa earnings top expectations; shares rise
Visa reported earnings and revenue that beat market expectations on Wednesday.
After the earnings announcement, the credit-card provider's shares climbed more than 2 percent in extended-hours trading. (Click here to get latest quote.)
The company swung to a net profit of $1.22 billion in the fiscal third quarter from a loss of $1.84 billion in the year-earlier period.
The year-ago quarter included a $4.1 billion litigation provision to cover costs associated with a settlement with U.S. retailers over the fixing of card fees.
Excluding items, earnings rose to $1.88 a share from $1.56 a share in the year-earlier period.
Revenue jumped almost 17 percent to $3 billion from $2.57 billion a year ago.
Analysts had expected Visa to report earnings excluding items of $1.79 a share on $2.89 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company said strong revenue gains from services, data processing and international transactions helped give a boost to overall revenue.
Payments volume grew 13 percent to $1.1 trillion from a year ago, Visa said.
For the full fiscal year, Visa said it expects net revenue growth of 13 percent, in-line with expectations. For fiscal 2014, Visa said it still expects low double-digit growth in revenue; analysts currently expect revenue growth of 11 percent.
—Reuters contributed to this report