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Visa earnings top expectations; shares rise

Andrew Harrer | Bloomberg | Getty Images

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

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