Tallahassee Journal

Wall Street credits Visa’s earnings, stock split

Wall Street credits Visa’s earnings, stock split

Credit and debit card giant Visa is up sharply in after hours trading after the company posted robust quarterly results and announced a 4-for-1 stock split. Visa shares jumped $11.44 (4.6%) to $259.44 Thursday after reporting first fiscal quarter earnings rose 15% to $2.53 per share from the year-ago quarter, while net operating revenue rose 7% to $3.4 billion. Wall Street analysts had expected Visa to post $3.34 billion in revenue and EPS $2.49.

Helped by consumers switching from cash payments to debit and credit cards, the company’s growth in payments volume jumped 11% to $1.2 trillion, while total transactions rose 10% to 17.6 billion. Earlier Thursday, Visa’s European division said its earnings rose 30% over year-ago levels, with over $1.7 trillion spent on Visa cards.

“While the challenges of the macro global environment don’t seem to abate, our results have remained consistent and reflect the strength and underlying resilience of our business model,” said CEO Charlie Scharf. “Our focus remains squarely on investing in our long-term strategic initiatives, driving new technologies and ways to pay as we continue to work collaboratively with governments, issuers, acquirers, and merchant partners.”

Visa accounts for about 9% of the 30-company Dow Jones Industrial Average, which is price-weighted. The split is likely to lessen its impact on the Dow’s daily moves. Split shares will begin trading March 19. The company telegraphed a split in its annual proxy and other corporate filings last month, saying the move, which will reduce its stock price, would attract more investors.