Visa Tops Estimates, Authorizes $1B Buyback
Visa (NYSE: V), the company behind the world's biggest bank- card network, said its fiscal third-quarter profit climbed 25 percent to $1.1 billion, or $1.56 a share, on an adjusted basis. Analysts expected a profit of $1.45. Revenue rose to $2.57 billion from $2.32 billion a year earlier. Analysts expected revenue of $2.52 billion.
"Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the U.S., executing on our strategy of growing the electronification of payments worldwide. We are pleased that we were able to come to a resolution in the merchant litigation which was acceptable to most parties while ensuring the long-term health of the U.S. payments industry," said Joseph Saunders, chairman and chief executive officer of Visa, in a statement.
As of June 30, Visa had $9.4 billion in cash and cash equivalents, according to the statement. The company also authorized a $1 billion share repurchase plan.
For 2012, the company forecast capital expenditures in the $350 million to $400 million range, marketing expenses of less than $1 billion and annual free cash flow greater than $4 billion. The stock is up almost one percent in after-hours trading.
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