Visa's Strong OutlookInvestors were thrilled with Visa's results for its fiscal third quarter, which were announced after the market close on Wednesday. For the quarter ended June 20, the payment processor reported earnings of $1.225 billion, or $1.88 a share, compared to a net loss of $1.839 billion, or $2.74 a share a year earlier, when Visa made a provision for litigation reserves of $4.1 billion to cover its portion of a large settlement between card processors and banks, including JPMorgan Chase ( JPM), Bank of America ( BAC), and a group of retailers over anticompetitive processing fees. Adjusting for the extraordinary expenses during the prior year's quarter and for tax benefits, Visa said its fiscal third-quarter earnings were up 16% year over year, while earnings per share were up 20%. The higher EPS came about because the company's share buybacks lowered the weighted average count of Class A common shares to 651 million from 681 million a year earlier.
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