Visa Profits Rise, Despite Economy

Visa (V) shares were surging in after-hours trading Wednesday, as the credit card processor's quarterly profit spiked 35%, despite the sour economy.

The San Francisco-based company made $574 million, or 74 cents a share, in the final three months of the year -- its fiscal first quarter -- compared to a pro forma profit of $424 million in the year-earlier period, before it went public. On an adjusted basis, the company made $599 million, or 78 cents a share, in the quarter, it said.

Analysts, on average, predicted the company would make 66 cents a share, according to Thomson Reuters.

Net operating revenue in the fiscal first quarter of 2009 was $1.7 billion, an increase of 17% over the prior year, driven by strong contributions across all revenue categories, Visa said.

The company said payments volume and processed transactions remained solid, particularly in regions outside of the U.S. such as Asia Pacific, central Europe, the Middle East and Africa, Latin America and the Caribbean.

"We are very pleased with our fiscal first-quarter earnings results and our ability to deliver strong operating performance," Chairman and CEO Joseph Saunders said in a press release. "Despite the increasingly challenging economy, processed transaction growth, the strength of debit, and the global diversity of our business continue to highlight the resilience of our business model."

But Saunders cautioned that the company sees tougher economic conditions in the second half of the year than it originally expected, which will result in revenue growth "likely in the low single digits."

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