Banking, finance, and taxes
Visa's Earnings Beat Matched With Big Share Buyback Plan
Published:
Last Updated:
Visa Inc. (NYSE: V) managed to exceed earnings estimates and the news is likely going to be viewed positively for rival Mastercard Inc. (NYSE: MA). Visa’s earnings were also bested by the announcement of a $1 billion share buyback plan from the credit card processor.
Adjusted quarterly earnings came in at $1.1 billion, or $1.56 per share outside of a litigation provision and related tax benefit. Thomson Reuters was calling for $1.45 EPS. Investors may be spooked by the $1.8 billion GAAP loss, but this reflects a litigation provision of $4.1 billion covered under the company’s retrospective responsibility plan. On top of the $1 billion share buyback, Visa deposited $150 million into the litigation escrow fund. The $1 billion compares to a market cap of about $82 billion.
The credit card processing giant reported that payments volume growth was a positive 6% over the prior year at $979 billion on a constant dollar basis. Cross-border volume growth on a constant dollar basis was up 14% for the quarter.
Visa shares closed down 0.3% today but the shares are up by 1.2% at $123.66 in the after-hours trading session. Its 52-week high is up at $131.00.
JON C. OGG
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.