(By Balachander) Payments network Visa Inc. (NYSE:V) reported stronger-than-forecast quarterly earnings, spurred by double-digit revenue growth from data processing, service and international transactions. The company also announced a new $1 billion class A share buyback plan.
Following the announcement, the stock added 1.88 percent in extended trading.
Adjusted earnings per share (EPS) of $1.56 topped market expectations of $1.45 for the third quarter. The company posted a net loss of $1.8 billion on a GAAP basis, including a litigation provision of $4.1 billion.
Net operating revenue rose 10 percent to $2.6 billion, beating consensus estimate of $2.52 billion.
"Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the U.S," commented CEO Joseph Saunders.
Service revenue rose 15 percent, and data processing and international transaction revenue also gained 17 percent and 13 percent, respectively.
On a constant dollar basis, payments volume grew 6 percent, while total processed transactions increased 1 percent.
Looking ahead for the full year, the credit and debit-card network now expects adjusted annual class A common stock EPS growth in the low twenties from prior view of growth in high teens to low twenties. It continues to see annual net revenue growth in the low double digits.
The No: 2 payments network Mastercard Inc. (NYSE:MA) is due to report its quarterly numbers on August 1.
Visa shares, which have been trading in the 52-week range between $76.11 and $131.00, ended Wednesday's regular trading at $122.20.