Visa Profit Rises as Payments Volume Grows
October 25 2017 - 07:41AM
Dow Jones News
By Allison Prang
Visa Inc. reported an 11% increase in profit for the fourth
quarter, potentially adding fuel to an already robust rally this
year for the San Francisco-based card company's stock.
Earnings were $2.14 billion for the quarter, or 90 cents a
share, beating analysts' estimates of 85 cents a share. Net
operating revenue rose 14% from a year ago to $4.86 billion,
bolstered by a 10% rise in payments volume.
The stock rose 0.54% in premarket trading. Alongside companies
like Boeing Co. and Apple Inc., Visa's stock price -- which is up
39% for the year -- has helped fuel a rise in the Dow Jones
Industrial Average, which crossed the 23000 threshold this
month.
The card company has been focused on further expanding its
overseas presence. In July, Visa announced it would open data
centers in both the United Kingdom and Singapore. Previously, Visa
only had centers based in North America.
Last month, Charlotte Hogg, Bank of England's former chief
operating officer, was named head of the company's European
operations, more than a year after Visa finished buying Visa
Europe. Visa Chief Executive Al Kelly Jr. said in prepared remarks
Wednesday the company was pleased with its European progress and
"will continue to make strategic investments that will further
strengthen our franchise there and globally."
The company also strives to expand in China in a bid to grow its
customer base in the world's largest country by population. During
Visa's third-quarter conference call in July, Mr. Kelly said the
company had applied for a domestic license with the People's Bank
of China. An access agreement orchestrated between both China and
the U.S. announced in May could prove useful for companies like
Visa who want to do business there, permitting they don't meet
roadblocks.
In its recent fiscal year, Visa said it earned a profit of $6.7
billion, up roughly 12% from the prior year. Net operating revenue
rose about 22% to $18.36 billion.
The company also said Wednesday it expects net revenue growth
for 2018 to be in the high-single digits, while adjusted operating
expenses should grow in the mid-single digits.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 25, 2017 07:26 ET (11:26 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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