Visa Returns To Profitability; Earnings Top Estimates
FOSTER CITY (CBS/AP) — Visa Inc. says it returned to a profit in its fiscal third quarter, aided by strong revenue growth as transactions increased.
The results topped Wall Street estimates and its shares rose 2.3 percent in after-hours trading.
The payments processing company reported on Wednesday net income of $1.23 billion, or $1.88 per share, for the three months ended June 30. That compares with a loss of $1.84 billion, or $2.74 per share, in the same period last year.
The prior-year results included a $4.1 billion provision related to litigation costs and other one-time items.
Revenue grew to $3 billion from $2.6 billion a year earlier.
Analysts polled by FactSet had forecast, on average, earnings of $1.80 per share on revenue of $2.9 billion.
Visa, based in Foster City, is the world’s largest processor of debit and credit-card payments.
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