Inside Visa, Inc.’s Upcoming Third Quarter Earnings Release
S&P 500 (NYSE:SPY) component Visa, Inc. (NYSE:V) will unveil its latest earnings on Wednesday, July 27, 2011. Visa Inc. is a global payments technology company that connects consumers, businesses, banks and governments around the world.
Visa, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.23 per share, a rise of 26.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.20. Between one and three months ago, the average estimate moved up, and has risen from $1.22 during the last month. For the year, analysts are projecting profit of $4.93 per share, a rise of 26.1% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of $1.23 per share against a mean estimate of profit of $1.20 per share.
Wall St. Revenue Expectations: On average, analysts predict $2.3 billion in revenue this quarter, a rise of 13.3% from the year ago quarter. Analysts are forecasting total revenue of $9.16 billion for the year, a rise of 13.6% from last year’s revenue of $8.06 billion.
Analyst Ratings: Analysts are bullish on this stock with 27 analysts rating it as a buy, one rating it as a sell and three rating it as a hold.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 16.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 23.3% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 23.6% while it rose 15.9% in the first quarter and 50.6% in the fourth quarter of the last fiscal year.
Competitors to Watch: MasterCard Incorporated (NYSE:MA), Fidelity National Information Services (NYSE:FIS), American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), JP Morgan (NYSE:JPM) Green Dot Corporation (NYSE:GDOT), NetSpend Holdings Inc (NASDAQ:NTSP), CompuCredit Holdings Corp (NASDAQ:CCRT), Alliance Data Systems Corp. (NYSE:ADS), Fiserv, Inc. (NASDAQ:FISV), and MoneyGram Intl., Inc. (NYSE:MGI)
Stock Price Performance: During June 22, 2011 to July 21, 2011, the stock price had risen $13.39 (17.9%) from $74.66 to $88.05. The stock price saw one of its best stretches over the last year between March 31, 2011 and April 11, 2011 when shares rose for eight-straight days, rising 5.6% (+$4.09) over that span. It saw one of its worst periods between May 17, 2011 and May 23, 2011 when shares fell for five-straight days, falling 4.4% (-$3.53) over that span. Shares are up $17.94 (+25.6%) year to date.
(Source: Xignite Financials)
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