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Visa’s Profit Falls, but Still Beats View (V)

Credit card issuer Visa Inc. ( V

) on Thursday said its third quarter profit fell 2% from last year, but results still beat analyst expectations.

The San Francisco-based company reported fiscal third quarter net income of $716 million, or 97 cents per share, compared with $729 million, or 97 cents per share, in the year-ago period. Revenue surged 23% to $2.03 billion.

On average, Wall Street analysts expected a smaller profit of 93 cents per share, on lower revenue of $1.97 billion.

Still, investors are wary about new legislation that goes into effect next year that will charge merchants for processing debit card payments. Visa CEO Joseph Saunders commented, "It goes without saying, the United States debit market will undergo changes following implementation of the Wall Street reform and consumer protection act next year."

Visa shares fell 28 cents, or -0.4%, in premarket trading Thursday.

The Bottom Line

We had removed shares of Visa ( V ) from our "recommended" list on May 6, when the stock was trading at $86.43. The company has a .67% dividend yield, based on last night's closing stock price of $75.18. The stock has technical support in the $68-$70 price area. If the shares can firm up, we see overhead resistance around the $80 price level. We would remain on the sidelines for now.

Visa Inc. ( V ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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