Visa Inc. Fourth Quarter Earnings on the Horizon

S&P 500 (NYSE:SPY) component Visa, Inc. (NYSE:V) will unveil its latest earnings on Wednesday, October 26, 2011. Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world.

Visa, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.24 per share, a rise of 30.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.23. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.24 during the last month. Analysts are projecting profit to rise by 27.4% versus last year to $4.98.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of $1.26 a share versus the estimate of profit of $1.23 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $2.39 billion in revenue this quarter, a rise of 12.7% from the year ago quarter. Analysts are forecasting total revenue of $9.21 billion for the year, a rise of 14.3% from last year’s revenue of $8.06 billion.

Analyst Ratings: Analysts are bullish on this stock with 26 analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

A Look Back: In the third quarter, profit rose 40.4% to $1 billion ($1 a share) from $716 million (66 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.4% to $2.32 billion from $2.03 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 14%, with the biggest boost coming in the second quarter when revenue rose 14.6% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 23.6% in the second quarter and 15.9% in the first quarter.

Competitors to Watch: MasterCard Incorporated (NYSE:MA), Fidelity National Information Services (NYSE:FIS), American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), JP Morgan (NYSE:JPM) 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)

Stock Price Performance: During August 24, 2011 to October 20, 2011, the stock price had risen $4.97 (5.8%) from $86.38 to $91.35. The stock price saw one of its best stretches over the last year between March 31, 2011 and April 11, 2011 when shares rose for eight-straight days, rising 5.6% (+$4.08) over that span. It saw one of its worst periods between August 15, 2011 and August 19, 2011 when shares fell for five-straight days, falling 7.1% (-$6.12) over that span. Shares are up $21.36 (+30.5%) year to date.

(Source: Xignite Financials)

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