Visa Inc. Earnings: Double-Digit Growth Again
S&P 500 (NYSE:SPY) component Visa Inc. (NYSE:V) reported its results for the first 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 First Quarter
Results: Net income for the business services company rose to $1.03 billion ($1.49 per share) vs. $884 million ($1.23 per share) in the same quarter a year earlier. This marks a rise of 16.4% from the year earlier quarter.
Revenue: Rose 13.8% to $2.55 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: Visa Inc. beat the mean analyst estimate of $1.46 per share. It beat the average revenue estimate of $2.47 billion.
Quoting Management: “Visa’s core businesses drove a strong start to fiscal 2012. We achieved solid financial and operational performance as we continued to benefit from the secular shift to electronic payments. Consumers’ desire to use our products is evident in the strong growth we see outside the U.S. and the resiliency we are seeing in the U.S. in the wake of debit regulation,” said Joe Saunders, chairman and chief executive officer. “We are in the midst of executing on our strategy to address the new landscape in the United States and we are pleased with the early results of our efforts.”
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 13.9%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 14.6% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 13.7% and in the third quarter of the last fiscal year, the figure rose 40.4%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the fourth quarter of the last fiscal year, by 3 cents in the third quarter of the last fiscal year, and by 3 cents in the second quarter of the last fiscal year.
Looking Forward: The average estimate for the second quarter remains unchanged at $1.46 a share. At $5.88 per share, the average estimate for the fiscal year has risen from $5.84 sixty days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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