Thursday, February 7, 2013

Visa Shares Dip After Earnings

Shares of Visa (V), which are at all-time highs, are down a fraction postmarket after it said its adjusted fourth-quarter profit rose to $1.82 a share and revenue was $2.85 billion. Consensus estimates had forecast a $1.79 profit and $2.82 billion revenue.

Visa also said it was launching a $1.75 billion share repurchase program, having bought back $1.3 billion of shares in the fourth quarter. The new authorization brings the amount on hand to buy shares to $2.9 billion; Visa last week also announced a 33 cents a share quarterly dividend.

From the release:

“Visa again delivered a strong quarter of revenue and earnings driven by success across our global franchise,” said Charlie Scharf, Chief Executive Officer. “Our results include significant continued investments in our core business, accelerating international expansion and the deployment of next-generation payment solutions for the benefit of our financial institution and merchant partners.”

Added Scharf, “We have been committed to using our capital wisely and that includes returning capital to stockholders through dividends and share repurchases. The board’s decision to increase Visa’s repurchase authorization continues that commitment, supported by confidence we have in our future.”

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