Visa (NYSE: V) gained 1.47% in after hours trading today after it reported its fiscal third-quarter earnings today. VISA surpassed analyst estimates with its fiscal third-quarter profit climbed 25 percent to $1.1 billion, or $1.56 a share, on an adjusted basis. Earlier, analyst had expected revenues of about $2.52 billion and a profit of $1.45 a share. To everyones surprise, revenue rose to $2.57 billion from $2.32 billion a year earlier. Further, the company behind the world’s biggest bank- card network also announed a $1 billion share repurchase plan. The company also deposited $150 million into the merchant litigation escrow. For 2012, the company forecast capital expenditures in the $350 million to $400 million range, marketing expenses of less than $1 billion and annual free cash flow greater than $4 billion.
In a statement, Joseph Saunders, chairman and chief executive officer of Visa Inc stated that “Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the U.S., executing on our strategy of growing the electronification of payments worldwide. We are pleased that we were able to come to a resolution in the merchant litigation which was acceptable to most parties while ensuring the long-term health of the U.S. payments industry. As we look forward, we remain focused on launching new payment solutions and products for our financial and merchant partners and consumers, while supporting the Visa brand and the advancement of electronic payments.” He also added that as of June 30th, Visa had $9.4 billion in cash and cash equivalents.