Wednesday, October 26, 2011

Visa (V) Beats on Bottom Line by 2 Cents, Tiny Miss on Top Line

Visa (V) shares are down just under 2% in after hours - apparently a $10M miss on revenue (on a $2.38B base) has people upset a tad.  The company is putting another $1B towards a share buyback program (however, announcements of share buybacks don't always mean the company will follow through).  Full report here.

  • For the fourth quarter ending September 30, 2011, GAAP net income was $880 million, an increase of 14% over the prior year. GAAP diluted class A common stock earnings per share were $1.27 - an increase of 20% over the prior year on a GAAP basis, or an increase of 34% over the prior year on an adjusted basis. 
  • GAAP net operating revenue in the fiscal fourth quarter of 2011 was $2.4 billion, an increase of 13% over the prior year and driven by strong contributions across all revenue categories. Currency fluctuations contributed 2 percentage points of growth towards quarterly net operating revenues.
  • Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2011, were 13 billion, a positive 9% increase over the prior year.
Share buyback:
  • During the three months ended September 30, 2011, the Company repurchased approximately 5.2 million class A common shares, at an average price of $80.87 per share, for a total cost of $423 million.
  • Today, the Company announces that its Board of Directors has authorized a $1 billion increase to its previously announced $1 billion share repurchase program. The authorization will be in place through July 20, 2012, and is subject to further change at the discretion of the Board.


Visa Inc. affirms its financial outlook for the following metrics through 2012:

•Annual net revenue growth: high single to low double digit range; and
•Adjusted annual diluted class A common stock earnings per share growth: mid to high teens range.


Mastercard (MA) and Visa (V) continue to be machines and now that Mr. Durbin is done messing with the sector, the stocks have had a wonderful past 3-4 months.

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