Earnings Preview: Visa's EPS, Revenue Expected to Rise

Visa V releases its next round of earnings this Wednesday, October 26, 2011. Here's Benzinga's essential guide to Visa's fourth quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of $1.25/share and revenues of $2.39 billion. Visa's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 95 cents/share on revenues of $2.12 billion. We'll know on Wednesday whether Visa has managed the estimated 31.6% increase in EPS and 12.7% rise in revenues on a year-over-year basis.

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

QuarterQ3Q2Q1Q4
EPS Estimate$1.23$1.20$1.21$0.94
EPS Actual$1.26$1.23$1.23$0.95

Stock Performance:

At last check, shares of Visa were trading at $91.35. Since January 1st, shares of Visa have given investors a return of 30.5%. For a full 12 months, the return has risen by 18.4%. 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 declined slightly over the past three months.

Competitors:

Want to check out the performance of Visa closest competitors? Take a look at some of the company's peers in the information technology sector.
  • Alliance Data Systems ADS: Moderate Buy with a $1.56 recent quarter EPS
  • American Express Company AXP: Moderate Buy with a $1.07 recent quarter EPS
  • Discover Financial Services DFS: Moderate Buy with a $1.18 recent quarter EPS
  • CompuCredit CCRT: Moderate Sell

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 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
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