Excluding Massive $4.1 Billion Settlement Charge Visa Beats Estimates

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The numbers are in. Visa beat expectations on adjusted profits at $1.56 per share versus Wall Street analysts’ estimates of $1.45 and revenues at $2.57 billion versus estimates of $2.32 billion.

The company also reported a huge $4.1 billion pre-tax loss related to a settlement with retailers over card swipe fees.

Also announced in the release was a $1 billion share buyback program through July 2013.

The company actually raised guidance for EPS growth in 2012 from “high teens to low twenties” to just “low twenties,” going against the grain of many major companies who are adjusting their outlooks downward this earnings season.

Visa appears to be enjoying strong growth in payment volume. From the press release:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2012, on which fiscal third quarter service revenue is recognised, was a positive 11% over the prior year at $958 billion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2012, was a positive 6% over the prior year at $979 billion.

Cross-border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2012.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2012, were 13.1 billion, a positive 1% increase over the prior year.

Visa shares initially rose around 3 per cent in after-hours trading.

The company will host a conference call to discuss the quarter at 5:00 p.m. ET.

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