Visa Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Revenue Growth
S&P 500 (NYSE:SPY) component Visa Inc. (NYSE:V) reported its results for the third quarter. Visa Inc. is a global payments technology company that connects consumers, businesses, banks and governments around the world.
Visa Earnings Cheat Sheet for the Third Quarter
Results: Net income for the business services company rose to $1 billion ($1.43 per share) vs. $716 million (66 cents per share) in the same quarter a year earlier. This marks a rise of 40.4% from the year earlier quarter.
Revenue: Rose 14.4% to $2.32 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: V reported adjusted net income of $1.26 per share. By that measure, the company beat the mean estimate of $1.23 per share. Analysts were expecting revenue of $2.3 billion.
Quoting Management: “Visa delivered another quarter of strong financial and operational performance as we benefitted from growth in global payments volume, and solid cross border and processed transaction growth,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “As we address the new regulatory landscape, we are prepared to deliver on our financial goals and remain an industry leading growth company in the global transactions space.” “Visa is a diverse global enterprise, with strong positions in both developed and emerging markets around the world, and we are committed to further diversifying our business and accelerating growth in key one markets worldwide,” said Saunders.”Weare executing onour growth strategy,investing heavily in innovation and takingimportant steps to bring new products and solutions toour partners and consumers.”
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 15.8%, 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% and in the first quarter, the figure rose 15.9%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 2 cents in the first quarter, and by one cent 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), 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), Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM) and MoneyGram Intl., Inc. (NYSE:MGI).
(Source: Xignite Financials)