NEW YORK (TheStreet) -- Shares of Visa fell after the company trimmed its forecast for annual revenue growth, citing tepid growth from cross-border transactions.
Shares of credit card processor Visa (V) are slipping in Friday trading after the company reported better-than-expected fiscal third-quarter earnings but trimmed its forecast for annual revenue growth.Visa reported a quarterly profit of nearly $1.4 billion, or $2.17 a Class A share, up from $1.89 a Class A share, last year. Revenue grew 5% to nearly $3.2 billion, as the company said it was affected by "a strong U.S. dollar and tepid growth from cross-border transactions." The company now expects annual revenue growth of 9% to 10%, compared to its previous forecast of 10% to 11%. Oppenheimer (OPY) analyst Glenn Greene said, "We expect some share weakness near-term given the discouraging cross-border revenue growth trends. That said, we suspect the underlying causes are transitory. Also, underlying U.S. and international volumes remain healthy." He has an Outperform rating on the stock with a $270 12-18 month price target. At last check, shares of Visa were slipping almost 4% to $213.86. In New York, I'm Brittany Umar for TheStreet.
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