UPDATE 2-Visa profit rises 33 percent, beats estimates

* Net income rises to $713 million

* EPS 96 cents vs Wall St estimate of 91 cents

* Shares fall 1.7 pct in after-hours trade
(Adds revenue, forecasts, background on Visa and CyberSource,
byline, updates share price)

By Maria Aspan

NEW YORK, April 28 (BestGrowthStock) – Visa Inc (V.N: ) on Wednesday
reported a 33 percent increase in quarterly profit, beating
Wall Street’s expectations, as consumer spending rebounded.

The world’s largest credit and debit card network earned
$713 million, or 96 cents per share, in its fiscal second
quarter. That compares with net income of $536 million, or 71
cents a share, a year earlier.

Analysts, on average, had expected Visa to earn 91 cents a
share, according to Thomson Reuters I/B/E/S.

The San Francisco company attributed its performance to
higher-than-expected growth in payments volume and said it was
increasingly optimistic about the improving economy.

Visa also raised its revenue forecast for the year. The
company said it expected annual net revenue growth at the high
end of the 11 percent to 15 percent range it provided in
February.

Revenue increased to $1.96 billion in the second quarter
from $1.65 billion a year earlier. Analysts expected $1.93
billion.

Visa and its main rival, MasterCard Inc (MA.N: ), do not lend
at all and have not suffered from the credit losses affecting
most banks over the past two years. But their revenue growth
was affected by the cutback in consumer spending during the
recession.

Visa receives fees whenever consumers use one of its credit
or debit cards. As consumers increasingly pay with plastic
instead of cash or checks, the company’s revenue rises.

But the opportunity for large revenue gains is relatively
limited in the United States, where most consumers already use
credit and debit cards. Like most of its competitors, Visa is
increasingly hoping that emerging markets and new payment
technologies will boost future business.

Visa’s new payment technologies business should be boosted
by its $2 billion acquisition of online payments company
CyberSource Corp (CYBS.O: ), a deal announced last week that is
set to close by the end of September. [ID:nN21172963] The
acquisition will eat up about half of Visa’s cash.

Visa’s revenue gains came in part from increased
transaction volumes, which Chief Executive Joseph Saunders
called in a statement “higher than expected”. Payment volume
growth for Visa credit and debit cards for the quarter ended in
December rose 8 percent to $769 billion from a year earlier.

The company’s shares fell 1.5 percent in after-hours
trading to $92.18.

Stock Research

(Reporting by Maria Aspan; Editing by Robert MacMillan and
Steve Orlofsky)

UPDATE 2-Visa profit rises 33 percent, beats estimates