Visa authorizes $1.5 billion buyback, profit rises 89 percent
(Reuters) - Visa Inc's (V.N: Quote) fourth-quarter profit rose 89 percent, beating analyst estimates, and the world's largest credit and debit-card network authorized a new $1.5 billion share repurchase program.
Visa, which also raised its dividend by 50 percent, said its profit rose to $1.7 billion, or $2.47 per Class A share, from $880 million, or $1.28 per Class A share, a year earlier.
Income was boosted by $627 million on the reversal of previously recorded tax reserves, Visa said.
Excluding the one-time gain, Visa earned $1.0 billion, or $1.54 per share, in the quarter.
Total net operating revenue rose 15 percent to $2.7 billion, while payment volumes grew 6 percent to $1 trillion.
Analysts on average had expected the company to earn $1.50 per share on revenue of $2.68 billion, according to Thomson Reuters I/B/E/S.
The company said it expects annual net revenue growth in the low double digits and adjusted earnings per share growth in the high-teens in percentage terms for fiscal 2013.
"Visa delivered strong financial performance for the fourth quarter and full year, a result of our focus on growing our core business, accelerating expansion of our business outside the U.S.," outgoing Chief Executive Joseph Saunders said.