Visa Profit Surges in First Public Quarter
Visa
(V) - Get Report
, one of the world's biggest credit-card processors, said Monday its profit surged during its first quarter as a public company as people across the globe spent more on its network.
The company's profit rose 27.6% to $314 million, or 39 cents per share, during its fiscal second quarter from $246 million, or 93 cents per share, in the year-ago period. Revenue climbed 22% to $1.45 billion from $1.19 billion.
Adjusted earnings, which exclude special items, were 52 cents per share, far exceeding the average analyst estimate of 46 cents per share, according to Thomson Financial.
Still, investors took profits in recent after-market trading, as Visa shares slid 3.6% to $72.90.
The company said an increase in fees it receives for servicing, data processing and international transactions all contributed to the profit boost. Payment volumes rose 19% to $681 billion, while processed transactions rose 16% to $11 billion. Increases came across all of its global divisions.
"Despite a challenging economic environment, Visa recorded strong growth in payments volume and transactions globally and across our diverse suite of products -- a trend which is continuing into the fiscal third quarter," CEO Joseph Saunders said in a statement.
Visa, which had been owned by a consortium of banks, raised $17.3 billion in its public offering last month. The banking industry, which has been hurt by the souring housing, mortgage and credit markets, also benefitted from its IPO. Smaller regional banks like
Huntington Bancshares
(HBAN) - Get Report
and
KeyCorp
(KEY) - Get Report
, as well as bigger entities like
JPMorgan Chase
(JPM) - Get Report
and
Bank of America
(BAC) - Get Report
, all said first-quarter results were aided by selling Visa stock.
Visa's main competitor,
MasterCard
(MA) - Get Report
, is scheduled to report earnings on Tuesday.