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