Visa Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

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 Earnings Cheat Sheet for the Fourth Quarter

Results: 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.

Actual vs. Wall St. Expectations: V beat the mean analyst estimate of $1.24 per share. Analysts were expecting revenue of $2.39 billion.

Quoting Management: “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.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.7%, with the biggest boost coming in the second quarter when revenue rose 14.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 40.4% and in the second quarter, the figure rose 23.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by 3 cents in the second quarter, and by 2 cents in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.42 a share to $1.41 over the last thirty days. The average estimate for the fiscal year is $4.98 per share, a rise from $4.93 ninety days ago.

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).

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(Source: Xignite Financials)

 

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