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VISA REPORTS STRONG Q4 EARNINGS GROWTH AT 17%

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Visa Q4 reports growth 2014

VISA REPORTS STRONG Q4 EARNINGS GROWTH AT 17%

Oct 30 2014, 12.28pm GMT

Stock.com

Visa Inc. reported fourth-quarter results with shares growth up and a new $5 billion share repurchase program.

Image: ©iStock.com/ cmspic

Q4 earnings figures

  • Adjusted quarterly net income of $1.4 billion or $2.18 per diluted class A common share, excluding special item, an increase of 14% and 17% over the prior year, respectively
  • Adjusted full-year 2014 net income of $5.7 billion or $9.07 per diluted class A common share, excluding special item, an increase of 15% and 19% over the prior year, respectively
  • GAAP quarterly net income of $1.1 billion or $1.72 per diluted class A common share, including special item, a decrease of 10% and 7% over the prior year, respectively
  • GAAP full-year 2014 net income of $5.4 billion or $8.62 per diluted class A common share, including special item, an increase of 9% and 14% over the prior year, respectively
  • The Company authorized a new $5.0 billion repurchase program, in addition to the previously announced 20% quarterly dividend increase

Success was credited by Charlie Scharf, Chief Executive Officer of Visa Inc., to Visa’s “competitive position, strong business model, and great talent helped us deliver adjusted EPS growth of 17% for the fourth quarter and 19% for the full year in the face of continued tepid economic growth and a strengthening dollar. More importantly, the underlying metrics which will drive our revenue growth over the longer term are strong and getting stronger."

Fiscal Fourth Quarter 2014 Financial Highlights:

  • Payments volume growth: Down by 1% - 12% over the prior year at $1.2 trillion for the three months ended June 30, 2014, as opposed to 11% over the prior year at $1.2 trillion for the three months ended September 30, 2014.
  • Total processed transactions: transactions processed by VisaNet, for the three months ended September 30, 2014, were 16.9 billion, a 9% increase over the prior year.
  • Q4 2014 service revenues: $1.5 billion, an increase of 8% over the prior year.
  • Data processing revenues: up 14% over the prior year to $1.3 billion.
  • International transaction revenues: up 4% over the prior year to $938 million.
  • Other revenues, including Visa Europe licensing fee: $212 million, a 16% increase over the prior year
  • Client incentives: $768 million and represent 19.2% of gross revenues.
  • Operating expenses: $1.2 billion for fiscal fourth quarter 2014, flat over the prior year results.

Fiscal Full-Year 2014 Financial Highlights:

  • Total processed transactions: totalled 64.9 billion, an 11% increase over the prior year.
  • Service revenues: $5.8 billion, an increase of 8% over the prior year.
  • Data processing revenues: 11% over the prior year to $5.2 billion.
  • International transaction revenues: up  5% over the prior year to $3.6 billion.
  • Other revenues: $770 million, a 7% increase over the prior year.
  • Client incentives: $2.6 billion and represent 16.9% of gross revenues.
  • Operating expenses: $4.6 billion for the twelve months ended September 30, 2014, flat over the prior year.

Future plans:

  • New $5 billion share repurchase program.
  • New digital payments technology, including Visa Checkout.

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