Visa adjusted profit beats as card payments grow

Wed Jul 25, 2012 7:37pm EDT
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By Jochelle Mendonca

(Reuters) - Visa Inc's (V.N: Quote) adjusted profit topped Wall Street estimates, and it raised its full-year earnings forecast for the second time this year, as more people move to card-based payments globally.

Visa, the world's largest credit- and debit-card network, also indicated it was not seeing signs of a slowdown, even as global economic growth falters on fears of a worsening European debt crisis.

"Although there appear to be darkening economic clouds, our global revenue drivers remain healthy with no clear signals of a downturn at this point in time," Chief Financial Officer Byron Pollitt said on a post-earnings conference call.

Card rival American Express indicated slowing spending growth when it reported results last week.

Visa now expects adjusted per-share earnings growth for fiscal 2012 in the low twenties. It had previously forecast earnings growth in the range of high teens to low twenties.

Payment volumes grew 6 percent in the quarter.

The San Francisco-based company posted an adjusted profit of $1.56 per share for the third quarter.

Total operating revenue rose 11 percent to $2.57 billion.   Continued...

Visa credit cards are displayed in Washington in this October 27, 2009, file photo. Visa Inc's adjusted profit topped Wall Street estimates and the company raised its full-year earnings forecast for the second time this year. REUTERS/Jason Reed/Files