S&P 500 (NYSE:SPY) component Visa, Inc. (NYSE:V) will unveil its latest earnings on Wednesday, May 2, 2012. 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 analyst estimate is for profit of $1.50 per share, a rise of 22% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.46. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.50 during the last month. For the year, analysts are projecting net income of $5.97 per share, a rise of 19.6% from last year.
Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at profit of $1.49 a share versus the estimate of net income of $1.46 a share. It marked the fourth straight quarter of beating estimates.
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Wall St. Revenue Expectations: Analysts are projecting a rise of 10.7% in revenue from the year-earlier quarter to $2.48 billion.
Analyst Ratings: Analysts are bullish on this stock, with 23 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.
A Look Back: In the first quarter, profit rose 16.4% to $1.03 billion ($1.05 a share) from $884 million ($1.23 a share) the year earlier, exceeding analyst expectations. Revenue rose 13.8% to $2.55 billion from $2.24 billion.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 13.9% over the last four quarters.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 40.4% in the third quarter of the last fiscal year and 13.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Stock Price Performance: Between January 31, 2012 and April 26, 2012, the stock price rose $22.74 (22.6%), from $100.45 to $123.19. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 6, 2012, when shares rose for six straight days, increasing 7.5% (+$7.47) over that span. It saw one of its worst periods between April 17, 2012 and April 23, 2012 when shares fell for five straight days, dropping 3.3% (-$3.98) over that span.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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