Market Overview

Visa Earnings Preview: Analysts Expect Flat EPS, Rising Revenue Over Previous Quarter

Visa (NYSE: V) announces its next round of earnings this Wednesday, July 27, 2011. Here is Benzinga's everything-that-matters guide for this Wednesday's third quarter earnings announcement.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.23 per share and revenues of $2.3 billion. Visa's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a positive EPS of 97 cents per share on revenues of $2.03 billion. Can Visa manage the estimated 26.8% rise in EPS and 13.3% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 Q1 Q4 Q3
EPS Estimate $1.20 $1.21 $0.94 $0.93
EPS Actual $1.23 $1.23 $0.95 $0.97

Stock Performance:

As of July 21, 2011, Visa's current share price was $88.05. Shares are up 25.6% year to date. For a full 12 months, the return has risen by 19.3%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Visa is a Moderate Buy. The strength of this rating has crept upwards over the past three months.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Visa's peers.

  • Alliance Data Systems (NYSE: ADS): Moderate Buy with a $1.87 recent quarter EPS
  • American Express Company (NYSE: AXP): Moderate Buy with a $1.07 recent quarter EPS
  • Discover Financial Services (NYSE: DFS): Moderate Buy with a $1.09 recent quarter EPS
  • Fidelity National Information Services (NYSE: FIS): Hold with a $0.55 recent quarter EPS

The financial transaction services company's industry has seen price/earnings growth of 1.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Visa Inc. is a global payments technology company that connects consumers, businesses, banks and governments around the world.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Visa earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

  • To see up-to-date news on Visa, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

Posted-In: Earnings Long Ideas News Short Ideas Previews Trading Ideas

 

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