”If the market holds 1305, this is a stock I’d buy on the dip.” That’s the trade from Guy Adami after our Negotiator parsed through earnings from Visa .
"Valuations are fair and it's sold off enough from its 52-week high that I think you should take a look at it," he says.
The latest results from the credit card giant showed quarterly profit rose by 40 percent largely due to a higher volume of global payments and a gain from revaluing its Visa Europe put option.
The firm also announced plans to buy back $1 billion in Class A common shares, under a board authorization that expires in July 2012.
Looking at the numbers a little more closely, the credit card payment processor reported fiscal third-quarter net income of $1 billion, or $1.43 per Class A common share, up from $716 million, or 97 cents per share, a year ago.
Excluding the one-time, noncash gain on its Visa Europe put option, Visa earned $883 million, or $1.26 per share.
Analysts estimated the credit card payment processor would report net income of $1.23 per share, according to Thomson Reuters I/B/E/S.
Net operating revenue increased 14 percent to $2.3 billion from a year ago.