Visa Earnings: Here’s Why the Stock is Rising Now

Visa, Inc. (NYSE:V) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.46%.

Visa, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20.51% to $1.88 in the quarter versus EPS of $1.56 in the year-earlier quarter.

Revenue: Rose 17% to $3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Visa, Inc. reported adjusted EPS income of $1.88 per share. By that measure, the company beat the mean analyst estimate of $1.8. It beat the average revenue estimate of $2.89 billion.

Quoting Management: “Visa delivered solid financial performance during our fiscal third quarter and we remain confident in delivering our guidance for fiscal year 2013,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “We remain committed and focused on our long-term strategic goal of supporting our issuers, acquirers, merchants and government partners through flexibility and innovation in electronic payments. We are accelerating opportunities to expand our network through mobile, eCommerce and data-driven solutions, while continuing to deliver value to our shareholders.”

Key Stats (on next page)…

Revenue increased 1.45% from $2.96 billion in the previous quarter. EPS decreased 2.08% from $1.92 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.84 to a profit $1.85. For the current year, the average estimate has moved up from a profit of $7.35 to a profit of $7.5 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)