Visa Profit Beats Expectations, But Stock Falls

Vietnam visa ho chi minh cityREUTERS/Claro CortesTwo tourists walk past advertisements of foreign companies near the airport of Ho Chi Minh City (formerly Saigon) March 8, 1994.

Visa just reported earnings for its fiscal third quarter that beat on both the top and bottom lines.

For the quarter, Visa earned $US2.17 per share, better than the $US2.10 that was expected by analysts, on revenue of $US3.16 billion, beating expectations for $US3.15 billion.

Following the report, Visa shares were down 2%.

Visa CEO Charlie Scharf said the company’s earnings grew, “in the face of a continued, subdued global economy.”

At more than $US222 per share, Visa is the largest segment of the Dow Jones Industrial Average, as the index is “price-weighted,” meaning its components are weighted by the price of their stock, giving the heaviest weighting to the most expensive members.

For its fiscal-year 2014, Visa expects revenue growth of 9%-10% and earnings per share growth in the 17.5%-18.5% range.

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