) solid fundamentals from V given higher regs-related uncertainty, but it continues to believe those concerns are overstated. V remains hopeful that Durbin delay can happen, but also sounded more confident than ever in ability to compete effectively post Durbin, if no delay. Total revs of $2.2b edged us by $32m, w/ upside from int'l trans fees and service fees. Data processing missed slightly, while other revs were in-line. Incentive payments were $20m higher vs. Deutsche Bank and further offset top-line strength. Constant FX payment vols for Mar Q were +13%, vs. +15% in Dec Q, but 50bps ahead of Deutsche Bank. EPS of $1.23 beat Deutsche Bank by $0.07. Visa reiterated FY2011 financial goals of +11-15% revs growth, ~60% operating margins, >20% EPS growth, and FCF >$3bn. If debit interchange bill is implemented w/o delay on 7/21, incentive payments in fiscal 4Q could spike above the 16-16.5% range as V tweaks incentives to issuers/merchants and ensures compliance with new routing rules. Deutsche Bank has a $105 PT and Buy rating on VISA VISA closed Thursday at $78.70