Summary Box: Visa posts 51 percent 4Q profit jump

AP News
Posted: Oct 27, 2010 6:54 PM
Summary Box: Visa posts 51 percent 4Q profit jump

CHARGED UP: Visa Inc. said Wednesday that continued growth in the number of transactions it processed helped lift its fiscal fourth-quarter earnings by 51 percent.

THE DETAILS: Revenue for the quarter rose 13 percent to $2.12 billion, from $1.88 billion last year. Service revenues, the fees that merchants pay for transaction processing, rose 13 percent to $912 million. That does not include price increases that were announced during the summer. Data processing revenue rose 15 percent to $840 million. International transaction revenues rose 22 percent to $619 million.

Net income rose to $774 million, or $1.06 per share, compared with $514 million, or 69 cents per share, in the year-ago quarter.

THE OUTLOOK: For its fiscal 2011, Visa said it still expects better-than-20 percent earnings per share growth, implying earnings of at least $4.84 per share. It forecast revenue growth between 11 and 15 percent for the new fiscal year, implying guidance ranging between $8.95 billion and $9.11 billion.

Wall Street was expecting, on average, $4.73 per share, on revenue of $8.03 billion.