Visa and 2 Money Centric Stocks in Focus After Earnings

Automatic Data Processing Inc. (NASDAQ:ADP) reported its results for the first quarter.  Net income for the business software and services company rose to $302.7 million (61 cents per share) vs. $278.5 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 8.7% from the year earlier quarter. Revenue rose 13% to $2.52 billion from the year earlier quarter. ADP fell in line with the mean analyst estimate of 61 cents per share. It beat the average revenue estimate of $2.44 billion.

Commenting on the results, Mr. Butler said, “I am pleased with ADP’s results for the first quarter of fiscal 2012. The increase in new business sales during fiscal 2011 and the acquisitions closed last fiscal year contributed to the strong revenue growth in the quarter. As anticipated, the year-over-year pretax margin comparison was negatively impacted by the decline in high-margin client interest revenues resulting from lower interest rates and the impact of last year’s acquisitions.”

Competitors to Watch: Paychex, Inc. (NASDAQ:PAYX), CBIZ, Inc. (NYSE:CBZ), Equifax Inc. (NYSE:EFX), McMillan Shakespeare Ltd. (NYSE:MMS), Blue Tax Group SA (NYSE:BTG), Colliers SA Holdings Ltd. (NYSE:COL).

Visa Inc. (NYSE:V) reported its results for the fourth quarter. Net income for Visa Inc. rose to $880 million ($1.27 per share) vs. $774 million ($1.06 per share) in the same quarter a year earlier. This marks a rise of 13.7% from the year earlier quarter. Revenue rose 12.6% to $2.38 billion from the year earlier quarter. V beat the mean analyst estimate of $1.24 per share. Analysts were expecting revenue of $2.39 billion.

“Visa continues to deliver strong results, with fourth quarter and full year performance reflecting a business that is both resilient and flexible enough to adapt and flourish in a changing business environment,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc.

Competitors to Watch: MasterCard Incorporated (NYSE:MA), Fidelity National Information Services (NYSE:FIS), American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), 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).

Equifax Inc. (NYSE:EFX) reported its results for the third quarter. Net income for the credit services company fell to $66.7 million (54 cents per share) vs. $76.5 million (61 cents per share) a year earlier. This is a decline of 12.8% from the year earlier quarter. Revenue  rose 3.5% to $490.4 million from the year earlier quarter. EFX reported adjusted net income of 65 cents a share. By that measure, it beat the mean analyst estimate of 64 cents per share. Analysts were expecting revenue of $487.9 million.

“The strong performance we delivered in the third quarter is a direct reflection on the effectiveness of our business strategy and our ability to execute. For the quarter, we grew revenue at double digit rates in our International (excluding Brazil), North America Personal Solutions, and North America Commercial Solutions businesses and at solid single digit rates in USCIS and TALX despite lower year-over-year activity in the mortgage market,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “As we look to the future, the fundamentals of our business are strong, and I expect the performance we have delivered this year, including our outlook for the fourth quarter, to position us very well in 2012.”

Competitors to Watch: Moody’s Corporation (NYSE:MCO), The Dun & Bradstreet Corp. (NYSE:DNB), Paychex, Inc. (NASDAQ:PAYX), McGraw-Hill (NYSE:MHP), and Automatic Data Processing (NASDAQ:ADP).

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