Visa Inc(NYSE:V) Reported High Q1 Profit, But Shares Slid

Visa Inc(NYSE:V), the world's largest credit and debit-card network, reported a 30% jumped in its first quarter driven by strong demand for credit card use in the United States and overseas. The results topped analysts’ views comfortable.
The company reported net income of $1.29 billion, or $1.91 a share, up from a year ago profit of $811 million, or $1.23 a share. Excluding the adjustment for the tax liability, the company would have earned $1.60 a share, ahead of analysts’ forecast by 7 cents.

Revenue during the quarter grew 15% year-over-year to $2.6 billion, again topping analysts’ estimates of $2.48 billion.
The company said Americans rang up 12% more on their charge cards for the quarter. Debit card use grew by only 4% to $284 million, however, the slowest growth in a year.Moreover, following the robust earnings the company lifted its estimated range for full-year earnings per share, despite uncertainty over questions from United States government anti-trust investigators on how it is adjusting to new federal limits on fees charged merchants for debit card transactions. For the year, Visa said it expects revenue growth in the double digits and does not plan to cut incentives, which will remain in the range of 17 to 18% of total revenue.

The company also disclosed in a filing with the Securities and Exchange Commission that it received a "civil investigative demand" on March 13 from the Antitrust Division of the U.S. Department of Justice for documents and information about its response to a new law and rules limiting debit card fees.

Visa said it will increase the minimum purchase amount at which cardholders do not have to enter a PIN or produce a signature while checking out. The amount will increase to $50 from $25 starting in October.
However, shares of Visa are down 1.71% in the pre-market session.