Citigroup: There's More To Visa Than A Stock Split
Donald Fandetti of Citigroup commented in a note following Visa Inc's (NYSE: V) first -quarter results that its core earnings per share of $2.53 indicates a “good performance” given the weaker global backdrop.
Fandetti states that many global companies are falling short of earnings expectations and guiding lower at a time when Visa reiterated mid-teens earnings per share growth. The company stated that it has defensive levers available if the environment deteriorates, which the analyst believes include pricing actions.
Fandetti adds that Visa tends to hedge 75 percent of 12 months forward international earnings, which has paid off. However, the analyst does note that as the hedges rolloff, 2016 could see a higher reported foreign exchange impact.
Fandetti is now reducing his fiscal 2015 earnings per share estimates by $0.05 to $10.35, reducing 2016 estimates by $0.10 to $12.05 and also reducing 2017 estimates by $0.10 to $14.15 on foreign exchange and volume growth pressures.
Shares remain Buy rated with a price target lowered to $290 from a previous $295.
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