CREDIT CARD NEWS
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Visa share prices fall the most since july

Visa share prices fall the most since july

November 22, 2010
Add to Favorites:

The world's biggest payment processing network, Visa Inc. saw the biggest drop in its share prices after a third quarter profit report which saw the profits matching the estimates of analysts. Visa said it will look to spend about a billion dollars to buy back some of the shares. Visa has been beating estimates for the previous ten quarters. The falls was of 4.3% and the share price touched 76.45 dollars in the New York Stock Exchange at around 4:15 pm. This has been the steepest drop in the prices of Visa shares since July 16th.

Joseph W. Saunders, who is the chief executive officer is repurchasing the shares and giving a boost to dividends. Meanwhile litigators, lawmakers and regulators have been challenging the fees and rules of the company. Visa is also waiting for the judgment of the Federal Reserve on how the central bank intends to interpret the mandate from the Congress to regulate the fees on debit cards. The company has also recently settled a US anti-trust lawsuit earlier this month. Saunders, speaking on a conference call with the analysts said that while there are many challenges, Visa is confident in its ability to change the environment. The fourth quarter net income has increase by 51 percent to touch 774 million dollars. This represents a 1.06 dollar earning per share. The same period last year saw Visa posting a net income of 515 million dollars. The total operating revenue of the company has also increased 13% to touch 2.1 billion dollars by the end of September. The net growth in revenue is expected by Visa to be 11 - 15% for the fiscal year 2011. The earnings per share would be expected to rise too by more than 20% with the free flow of cash touching 3 billion dollars.

The debit caps meanwhile don't seem to affect the results of Visa according to the company. According to chief financial officer of the company, the discussions and guidance would be following a more explicit rule making by the Fed. The transactions that were processed by the card industry giant have increased by 16% to touch 12.1 billion dollars. The spending on credit cards has meanwhile touched 828 billion dollars which represents an increase of 14% from a year earlier, after adjustments with currency fluctuations are made, according to the company. The volumes of cross border transactions increased too by 16%.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.