NEW YORK (TheStreet) -- Visa (V - Get Report) shares are 3% to $75.25 in Monday's trading session after the card issuer reported its quarterly earnings that came in under estimates, and confirmed plans to buy counterpart Visa Europe for $23.4 billion in cash and stock.
The deal consists of Visa paying $12.68 billion in upfront cash and $5.51 billion in preferred stock convertible into common shares, the Wall Street Journal reports.
Overall, this deal would put Visa in a better position to compete with MasterCard (MA), Reuters noted.
For the latest quarter, the company earned 62 cents a share, missing analysts' projections by a cent.
Revenue however, came in at $3.57, meeting analysts' expectations.
In the same period the year before, the company earned 43 cents a share on revenue of $3.23 billion.
Despite earnings falling short of projections amid a challenging macroeconomic backdrop, Visa said that payments volume growth, cross-border volume growth and total processed transactions increased year-over-year.
CEO Charlie Scharf added, "Although fiscal 2016 reported growth rates will be negatively impacted by a strong U.S. dollar and an uneven global economy, we are well positioned for strong success in 2017 and well beyond."
Along with the earnings results, Visa announced a new $5 billion share buyback program.
Separately, TheStreet Ratings team rates VISA INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
We rate VISA INC (V) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: V