Visa announced its Q1 2013 results on Wednesday, beating analyst estimates by a wide margin amid strong growth and profit numbers.
Visa’s net income increased from 26 percent to $1.29 billion, or $1.93 a share, from $1.03 billion, or $1.49 per share in Q1 2012: a 26 percent increase on a year-to-year basis.
The company’s $1.93 share mark includes a one-time gain of $0.11 from a “catch-up tax benefit effect” resulting from new appointment rules from California.
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Wall Street analysts had expected the credit card giant to earn $1.79 per share on $2.82 in revenue, meaning Visa would have surpassed expectations even without the $0.11 boost.
“Our results include significant continued investments in our core business, accelerating international expansion and the deployment of next-generation payment solutions for the benefit of our financial institution and merchant partners,” Visa CEO Charlie Scharf said in a statement.
Visa’s revenue increased to $2.85 billion from $2.55 billion a year ago, while their payments volume grew 9 percent in the quarter to $1.1 trillion.
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In terms of financial outlook, Visa predicted an annual free cash flow of around $6 billion for fiscal 2013, with an annual net revenue growth in the low double digits and an annual operating margin of around 60 percent.
The company saw a modest boost of 0.81 percent to $160.82 per share on the stock market at close.
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