* Fourth-quarter profit of $1.85/shr vs est $1.85
* Total revenue of $2.97 bln vs est $3.03 bln
* Says 2014 expectations slightly lower than they were in
* Shares down 3.1 pct in post-market trading
By Tanya Agrawal
Oct 30 Visa Inc, the world's largest
credit and debit card company, reported a 28 percent fall in
quarterly profit due to a higher income tax provision and was
slightly pessimistic about its outlook in the face of soft U.S.
Visa shares fell 3.1 percent to $197.50 in after-hours trade
while those of rival MasterCard Inc fell 1 percent, ahead
of its results on Thursday.
Visa said it expects constant dollar revenue growth of low
double digits and a foreign exchange headwind of 2 percentage
points over the next year. It said its expectations are slightly
lower than they were in June.
It maintained its forecast for percentage growth per share
in 2014 in the mid-to-high teens despite the continued slow pace
of global economic recovery, and the growing impact of a strong
Visa also authorized a new $5 billion share buyback program
and said it believed the Federal Reserve had a strong case in
its appeal against a court ruling limiting the fees banks charge
retailers for debit card use.
A successful appeal against the court ruling in July would
protect an important revenue stream for card companies.
SLOWING U.S. GROWTH
Both Visa and MasterCard face slowing growth in the United
States, their largest market.
U.S. consumer sentiment slid in September to its lowest in
five months as consumer lending rates rose and shoppers eyed
sluggish economic growth ahead, a survey showed.
Visa said its U.S. domestic payment volume dropped to 8
percent of global volumes in September from 11 percent in
Visa and MasterCard have been trying to capture new business
in emerging markets where more customers are signing up for
cards and digital payments instead of cash.
Net income attributable to Visa fell to $1.19 billion, or
$1.85 per Class A share, from $1.66 billion, or $2.47, a year
Analysts on average, had expected the company to earn $1.85
per share, according to Thomson Reuters I/B/E/S.
Total operating revenue rose 9 percent to $2.97 billion but
came in short of analysts' expectation of $3.02 billion due to a
strong U.S. dollar.
Visa's results were hit by a $574 million income tax
provision, compared with a benefit of $74 million a year
earlier. The company gave no reason for the bigger tax bill.
Visa's payment volumes rose 13 percent to $1.1 trillion in
Foster City, California-based Visa's shares have risen 35
percent since the beginning of the year, outperforming the
broader S&P 500 Index, which has gained around 24
percent. They closed at $203.82 on the New York Stock Exchange.