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Visa Shares Weak Despite Strong Results

V

Shares of Visa Inc (NYSE: V) traded down about 1 percent in Monday’s after-hours session, following the announcement of the company’s Q4 results.

Earnings of $0.78 per share beat the Street’s consensus by $0.05, while revenue of $4.261 billion, up 19.3 percent year-over-year, came in ahead of estimates of $4.23 billion.

The company said its new CEO, Alfred F. Kelly, would start in December with a $15.4 million target annual compensation. This figure is 31 percent higher than the current CEO’s target.

Related Link: Will The Other Credit Card Stocks Mirror The Q3 Success Of American Express?

"We continue to deliver healthy earnings growth in the face of continued, but abating headwinds. We have begun to see the benefits from our acquisition of Visa Europe and strong cost discipline helped our results. At the same time, we are unwavering in our commitment to invest in client partnership opportunities and the further build out of our digital payments capabilities," said CEO Charlie Scharf.

"As we enter fiscal 2017, we are positioned well as revenue headwinds will continue to ease, we will continue to see the benefits from Visa Europe in our results, and our strong client franchise continues to grow," the Chief Executive added.

Shares traded recently at $82.25, down about 1.1 percent in after-hours trading.

The Vetr crowd has a 3.5 Stars (Buy) rating on shares of Visa. Its average price target of $87.75 implies a potential return of 5.5 percent from current valuations.