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Visa's quarterly revenue beats forecasts but slower growth in coming months seen

Visa said it expects an increase in full-year expenses and slower revenue growth in the current quarter
Visa
Visa's revenues were driven by a rise in US payment volumes

Visa Inc (NYSE:V) reported quarterly revenue that beat market expectations thanks to a rise in card spending in the US.

Revenue in the first quarter to December 31 increased 9% to US$4.86bn, above the US$4.85bn analysts polled by Thomson Reuters expected.

Profit rose to US$2.52bn, or US$1.07 a share, from US$2.07bn, or 86 cents a share, the year before. 

Excluding items related to the impact of the new US tax law, profit came to US$2.54bn, or US$1.08 a share, against expectations of 99 cents. 

Payment volumes climbed about 10% to US$1.9trn at constant currency, with the US representing about 43.3% of the total. 

Transactions made outside of the US increased 9%.

However, shares fell 2.4% to US$125.7 each in US pre-market trade as Visa said it expects an increase in full-year expenses and slower revenue growth in the current quarter.

It sees full year adjusted operating expense growth to the high end of mid-single digits, up from a previous forecast of mid-single digits. 

Visa maintained its outlook for annual net revenue growth of high single digits on a nominal dollar basis. 

The company said it would repurchase US$7.5bn of its stock and it has US$9.1bn of funds available for share buybacks.

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Newswire
July 25 2015

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