S&P 500 (NYSE:SPY) component Visa Inc. (NYSE:V) reported its results for the fourth quarter. Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world.
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Visa Inc. Earnings Cheat Sheet
Results: Net income for the financial transaction services rose to $1.66 billion ($2.47 per share) vs. $880 million ($1.27 per share) in the same quarter a year earlier. This marks a rise of 88.9% from the year-earlier quarter.
Revenue: Rose 14.6% to $2.73 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Visa Inc. reported adjusted net income of $1.54 per share. By that measure, the company beat the mean estimate of $1.50 per share. It beat the average revenue estimate of $2.52 billion.
Quoting Management: “Visa delivered strong financial performance for the fourth quarter and full year, a result of our focus on growing our core business, accelerating expansion of our business outside the U.S and investing in next-generation technologies that will define the future of payments,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “With our solid record of growth and sound strategy, Visa has a strong foundation for continued long-term growth as technology-enabled change continues to shape our global market. We will continue to invest in new technologies that will help our financial institution clients expand their businesses, add incremental value to the merchant community, and forge new revenue opportunities for both Visa and our partners. We see extraordinary opportunity for growth in the payments industry.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.3%, with the biggest boost coming in the second quarter when revenue rose 14.8% from the year earlier quarter.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 11 cents in the third quarter, by 10 cents in the second quarter, and by 3 cents in the first quarter.
The company reported a profit last quarter after being in the red the prior quarter. In the second quarter, the company booked a net loss of $1.29 billion, or a loss of $1.34 per share.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from $1.79. The average estimate for the fiscal year has seen a bump from $6.15 per share sixty days ago to $6.16.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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