VISA INC. (V) SEC Filing 10-Q Quarterly report for the period ending Friday, March 31, 2017

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EXHIBIT 99.1
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Visa Inc. Reports Strong Fiscal Second Quarter 2017 Results and Announces New $5.0 Billion Share Repurchase Program
San Francisco, CA, April 20, 2017 - Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal second quarter 2017, ended March 31, 2017

Fiscal Second Quarter 2017 Key Highlights:
GAAP net income of $430 million or $0.18 per share including special items related to the legal entity reorganization of Visa Europe
Adjusted net income of $2.1 billion or $0.86 per share excluding special items related to the legal entity reorganization of Visa Europe
Net operating revenue of $4.5 billion, an increase of 23%, driven by inclusion of Europe and continued growth in payments volume, cross-border volume and processed transactions
Payments volume growth, on a constant dollar basis, was 37% over the prior year at $1.7 trillion
Cross-border volume growth, on a constant dollar basis, was 132% or 11% inclusive of Europe in prior year results
Total Visa processed transactions were 26.3 billion, a 42% increase over the prior year, or 12% growth inclusive of Europe in prior year results
Newly-formed Visa Foundation funded with contribution of $192 million
Returned approximately $2.1 billion of capital to shareholders in the form of share repurchases and dividends
Board authorized a new $5.0 billion class A common stock share repurchase program

“In the face of geo-political uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across nearly every part of our business,” said Alfred F. Kelly, Jr., Chief Executive Officer of Visa Inc. "Robust growth in payments volume, cross-border volume and processed transactions drove better than expected results. Looking ahead, we are continuing our efforts across the globe to electronify commerce and digitize economies to the benefit of consumers and societies alike.”




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The following information was filed by VISA INC. on Thursday, April 20, 2017 as an 8K 2.02 statement, which is a press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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  • v_10q_2017-04-21_82_100
    Financial - Income
    Other non-operating income decreased in the three and six months ended March 31, 2017 due to the absence of $116 million of net unrealized gains recognized on currency forward contracts entered into during the second quarter of fiscal 2016 to mitigate a portion of our foreign currency exchange rate risk associated with the upfront cash consideration paid in the Visa Europe acquisition.
  • v_10q_2017-04-21_106_121
    Financial - Debt
    Cash provided by investing activities increased compared to the prior year comparable period as we invested a portion of the proceeds received from our debt issuance in available-for-sale securities in the prior year.
  • v_10q_2017-04-21_68_84
    Revenue - Product
    Service revenues, which include revenues earned by Visa Europe in the three and six months ended March 31, 2017 , increased primarily due to 38% and 42% growth in nominal payments volume during the three and six month comparable periods, respectively.
  • v_10q_2017-04-21_105_119
    Revenue - Geography
    Cash provided by operating activities for the six months ended March 31, 2017 was higher than the prior year comparable period, reflecting continued growth in our underlying business, including Visa Europe.
  • v_10q_2017-04-21_17_36
    Financial - Earnings
    Net of the related cash tax benefit of $71 million, determined by applying applicable tax rates, adjusted net income increased by $121 million.
  • v_10q_2017-04-21_70_218
    Revenue - Product
    International transaction revenues increased primarily due to nominal cross-border volume growth of 129% and 132% during the three and six month comparable periods, respectively, which includes revenues earned by Visa Europe during the three and six months ended March 31, 2017. International transaction revenue growth also reflects the resulting impact of Visa Europe revenues on our corresponding yield.
  • v_10q_2017-04-21_92_114
    Financial - Income
    As such, we have presented our adjusted effective income tax rate for these periods in the tables below, which we believe provides a clearer understanding of our operating performance for the reported periods.
  • v_10q_2017-04-21_69_217
    Revenue - Product
    Data processing revenues increased mainly due to overall growth in processed transactions of 42% and 43% during the three and six month comparable periods, respectively, which includes data processing revenues earned by Visa Europe in the three and six months ended March 31, 2017, and the resulting impact on our data processing revenue yield.
  • v_10q_2017-04-21_20_45
    Other - Other
    The following tables reconcile our as-reported financial measures calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the three and six months ended March 31, 2017 and 2016.
  • v_10q_2017-04-21_37_55
    Revenue - Product
    Nominal payments volume over the prior year posted double-digit growth in the U.S., driven mainly by consumer credit.
  • v_10q_2017-04-21_104_238
    Other - Other
    Increase in cash and cash equivalents
  • v_10q_2017-04-21_71_86
    Revenue - Geography
    Client incentives increased during the three and six month comparable periods mainly due to incentives recognized on long-term customer contracts that were initiated or renewed after the second quarter of fiscal 2016, Visa Europes incentives for the three and six months ended March 31, 2017, and overall growth in payments volume.
  • v_10q_2017-04-21_68_85
    Revenue - Product
    The growth in service revenues was slower than the growth in payments volume during the three and six months ended March 31, 2017, reflecting the inclusion of Visa Europe revenue and the resulting impact on our service revenue yield.
  • v_10q_2017-04-21_71_87
    Other - Other
    The amount of client incentives we record in future periods will vary based on changes in performance expectations, actual client performance, amendments to existing contracts or the execution of new contracts.
  • v_10q_2017-04-21_64_76
    Revenue - Product
    The increase in operating revenues reflects the operating revenues of Visa Europe and continued growth in processed transactions and nominal payments volume.
  • v_10q_2017-04-21_85_105
    Financial - Income
    The effective income tax rates were 84% and 56% for the three and six months ended March 31, 2017, respectively, and 30% and 28% for the three and six months ended March 31, 2016, respectively.
  • v_10q_2017-04-21_92_115
    Other - Other
    See Overview Adjusted financial results within this Managements Discussion and Analysis of Financial Condition and Results of Operations for descriptions of the adjustments in the tables below.
  • v_10q_2017-04-21_37_56
    Revenue - Product
    Nominal international payments volume growth was positively impacted due to the inclusion of nominal payments volume related to Visa Europe for the three and six months ended December 31, 2016
  • v_10q_2017-04-21_13_24
    Revenue - Product
    We recorded net operating revenues of $4.5 billion and $8.9 billion for the three and six months ended March 31, 2017, respectively, an increase of 23% and 24%, respectively, over the prior year comparable periods, reflecting the operating revenues of Visa Europe and continued growth in nominal payments volume, nominal cross-border volume and processed transactions.
  • v_10q_2017-04-21_100_117
    Financial - Income
    Effective income tax rate is calculated based on unrounded numbers.
  • v_10q_2017-04-21_78_94
    Financial - Expense
    General and administrative expenses increased primarily due to $192 million of expense related to the Visa Inc. shares held by Visa Europe that were received by the newly-formed Visa Foundation, and increased expenses to provide product benefits to our account holders as a result of business growth.
  • v_10q_2017-04-21_91_110
    Other - Other
    Our unrecognized tax benefits that would favorably impact the effective tax rate, if recognized, increased by $69 million and $97 million for the three and six months ended March 31, 2017, respectively.
  • v_10q_2017-04-21_14_28
    Revenue - Geography
    The increase in both periods was mainly from the inclusion of Visa Europes operating expenses following the acquisition.
  • v_10q_2017-04-21_75_92
    Financial - Expense
    Our overall operating expenses increased primarily due to the inclusion of Visa Europe expenses for the first half of fiscal 2017.
  • v_10q_2017-04-21_14_27
    Financial - Expense
    Adjusted operating expenses, which excludes the non-recurring, non-cash operating expense related to Visa Inc. shares received by the newly-formed Visa Foundation, were $1.5 billion and $2.8 billion, respectively, an increase of 24% and 20%, respectively, over prior year comparable periods.
  • v_10q_2017-04-21_92_112
    Financial - Income
    Adjusted effective income tax rate.
  • v_10q_2017-04-21_12_183
    Other - Other
    For a full reconciliation of our adjusted financial results, see tables in
  • v_10q_2017-04-21_84_103
    Financial - Income
    As a result of the reorganization, during the three months ended March 31, 2017, we recorded a non-recurring, non-cash income tax provision of $1.5 billion primarily related to the elimination of deferred tax balances originally recognized upon the acquisition of Visa Europe.
  • v_10q_2017-04-21_6_17
    Financial - Income
    As a result of the reorganization, during the three months ended March 31, 2017, we recorded a non-recurring, non-cash income tax provision of $1.5 billion primarily related to the elimination of deferred tax balances originally recognized upon the acquisition of Visa Europe.
  • v_10q_2017-04-21_66_80
    Revenue - Product
    The following table sets forth the components of our net operating revenues, including operating revenues earned by Visa Europe for the three and six months ended March 31, 2017.
  • v_10q_2017-04-21_76_220
    Financial - Expense
    Personnel expenses increased driven by higher incentive compensation, combined with continued increase in headcount reflecting our strategy to invest for future growth.
  • v_10q_2017-04-21_19_43
    Financial - Expense
    Net of related tax expense of $35 million, determined by applying applicable federal and state tax rates, the impact to net income was $81 million.
  • v_10q_2017-04-21_15_31
    Other - Other
    As such, we believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented.
  • v_10q_2017-04-21_45_205
    Revenue - Product
    The following table presents nominal and constant payments volume growth.
  • v_10q_2017-04-21_115_163
    Financial - Dividend
    In April 2017, our board of directors declared a cash dividend in the amount of $0.165 per share of class A common stock determined in the case of class B and C common stock and U.K.&I and Europe preferred stock on an as-converted basis, which will be paid on June 6, 2017, to all holders of record of our common and preferred stock as of May 19, 2017.
  • v_10q_2017-04-21_14_26
    Financial - Expense
    Total operating expenses for the three and six months ended March 31, 2017 were $1.7 billion and $3.0 billion, respectively, an increase of 40% and 28%, respectively, over prior year comparable periods.
  • v_10q_2017-04-21_19_41
    Revenue - Geography
    During the second quarter of fiscal 2016, we entered into currency forward contracts to mitigate a portion of our foreign currency exchange rate risk associated with the upfront cash consideration paid in the Visa Europe acquisition.
  • v_10q_2017-04-21_65_78
    Revenue - Product
    Our operating revenues, primarily service revenues, international transaction revenues and client incentives, are impacted by the overall strengthening or weakening of the U.S. dollar as payments volume and related revenues denominated in local currencies are converted to U.S. dollars.
  • v_10q_2017-04-21_85_106
    Other - Other
    The effective tax rate for the three and six months ended March 31, 2017 differs from the effective tax rate in the same periods in the prior fiscal year primarily due to:
  • v_10q_2017-04-21_81_98
    Financial - Expense
    Interest expense increased in the six months ended March 31, 2017 primarily due to the issuance of $16.0 billion fixed-rate senior notes in December 2015.
  • v_10q_2017-04-21_108_128
    Revenue - Product
    Funds from operations are maintained in cash and cash equivalents and short-term or long-term available-for-sale investment securities based upon our funding requirements, access to liquidity from these holdings, and the returns that these holdings provide.

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Exhibit 10.1 - MATERIAL CONTRACT

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Exhibit 31.1 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 31.2 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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Exhibit 32.2 - SECTION 1350 CERTIFICATION

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001403161-17-000028
  • Submitted to the SEC: Friday, April 21, 2017
  • Accepted by the SEC: Friday, April 21, 2017
  • Period Ending: March 2017
Companies
 

V Morningstar

VISA INC.

$95.22 -0.36 (-0.38%)

Day's Range:
$95.10 to $96.26

52-Week Range:
$73.25 to $96.60

Volume:
6,970,841

Volume (Avg):
8,106,080

Earnings per Share:
$2.00

PEG / Short / PE Ratios:
1.87 / 6.51 / 47.51

Market Cap:
$219.62B

Book Value:
10.92

EBITDA:
$11.59B