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Visa Won't Be Hurt by Reform—'Outperform' Maintained: Analyst

Visa reported a profit of $716 million on Wednesday after the closing bell, outpacing estimates, as consumers resumed spending. Robert Dodd, senior transaction processing industry analyst at Morgan Keegan, shared his analysis of the credit card giant.

“It appears from the consumer credit numbers that we’ve got declines in overall consumer revolving debt, but most of that seems to be related to consumer charge-offs,” Dodd told CNBC.

“In terms of volumes as a whole in the US, you see 13 percent [rise] through the first 3 weeks of July—slightly better than in June," he continued. "So overall volume trends appear to be pretty strong.”

In terms of the recent financial regulation bill, Dodd said Visa is unlikely to be hurt by the new debit card rules.

“[There] would be indirect effects later down the road—if there were any,” he said.

Dodd has had an outperform rating on Visa since October 2008.

Scorecard—What He Said:

  • Dodd's Previous Appearance on CNBC (May 1, 2010)

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Visa Competes With:


American Express

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Dodd does not own shares, but has investment banking clients who own shares of Visa.

An affiliate of Morgan Keegan received compensation for products or services other than investment banking from Visa in the past 12 months.