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

S&P 500 (NYSE:SPY) component Visa Inc. (NYSE:V) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for Visa Inc. rose to $1.29 billion ($1.91 per share) vs. $881 million ($1.23 per share) in the same quarter a year earlier. This marks a rise of 46.7% from the year-earlier quarter.

Revenue: Rose 14.8% to $2.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Visa Inc. reported adjusted net income of $1.60 per share. By that measure, the company beat the mean estimate of $1.50 per share. It beat the average revenue estimate of $2.48 billion.

Quoting Management: “Our strong financial performance this quarter was fueled by continued growth of U.S. credit products, strong cross border spending and expansion of Visa’s core business in international markets,” said Joseph Saunders, Chairman and Chief Executive Officer, Visa Inc. “Across the globe Visa’s business continues to expand at a healthy pace, the result of our commitment to continued expansion in our core business as well as our ability to leverage innovative payment technologies.”

Key Stats:
Visa (NYSE:V) has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14%, with the biggest boost coming in the most recent quarter when revenue rose 14.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 16.4% and in the fourth quarter of the last fiscal year, the figure rose 13.7%.

Visa (NYSE:V) has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from $1.44 a share to $1.45 over the last ninety days. For the fiscal year, the average estimate has moved up from $5.88 a share to $5.97 over the last ninety days.

Competitors to Watch: MasterCard Incorporated, Fidelity National Information Services, American Express Company, Discover Financial Services, Green Dot Corporation, NetSpend Holdings Inc, CompuCredit Holdings Corp, Alliance Data Systems Corp., Fiserv, Inc., and MoneyGram Intl., Inc.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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