FOSTER CITY, Calif. – Shares of Visa Inc. rose more than 2% in after-hours trading to $140.80 yesterday, after the payments giant reported a 90% rise in fourth quarter earnings to $1.66 billion.
The fourth quarter surge was fueled by a previously recorded tax reserve, which increased net income by $627 million, and a 15% rise in revenue to $2.73 billion.
For the full year Visa reported a 13% rise in revenue to $10.4 billion, and a 41% drop in net income to $2.1 billion, because of several special items, including a litigation provision of $4.1 billion for the pending antitrust settlement and related tax benefits during the fiscal third quarter. Other special items were a one-time, non-cash deferred tax adjustment of $208 million during the fiscal second quarter, and the reversal of previously recorded tax reserves, which totaled $627 million during the fiscal fourth quarter.
“Visa delivered strong financial performance for the fourth quarter and full year, a result of our focus on growing our core business, accelerating expansion of our business outside the U.S and investing in next-generation technologies that will define the future of payments,” said Joseph Saunders, Visa CEO.