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Visa Fourth Quarter Earnings Preview
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Visa (NYSE:V) will release its fourth quarter results on Wednesday, October 31, 2012. Analysts are expecting the company to report a profit of $1.50 a share, up from $1.27 a year ago.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports
What to Expect: Analysts are expecting Visa to report earnings of $1.50 per share, up 18.1% from a year ago, when the company reported earnings of $1.27 per share.
Though it hasn't changed in the last month, the consensus estimate is up from $1.49 three months ago. For the fiscal year, analysts are expecting earnings of $6.16 per share.
Revenue is expected to exceed last year's figure of $2.38 billion by 12% and come in at $2.67 billion for the quarter. For the fiscal year, expected revenue is $10.36 billion.
Company Performance: Revenue has grown by double-digit increases in the past four quarters. On average, the figure has risen by 12.9%. The biggest change came in the second quarter when revenue rose 14.8%.
V's P/E ratio of 100.4 is above the industry average of 16.25. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Over the past quarter, the stock price has risen to $137.55 from $130.84 on July 30, 2012. The stock saw one of its worst stretches when its price fell $6.07 per share between October 17, 2012 and October 24, 2012.
The Competition: Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world. The company's closest competitor in the consumer financial services industry, MasterCard (MA), will report earnings on October 31, 2012. Analysts are expecting earnings of $5.93 per share for MasterCard, up 5.3% from last year's earnings of $5.63 per share. Analysts are more optimistic about Visa than about MasterCard. Only 22 out of 29 analysts rate the latter a buy compared to 23 of 29 for the former.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports
What to Expect: Analysts are expecting Visa to report earnings of $1.50 per share, up 18.1% from a year ago, when the company reported earnings of $1.27 per share.
Though it hasn't changed in the last month, the consensus estimate is up from $1.49 three months ago. For the fiscal year, analysts are expecting earnings of $6.16 per share.
Revenue is expected to exceed last year's figure of $2.38 billion by 12% and come in at $2.67 billion for the quarter. For the fiscal year, expected revenue is $10.36 billion.
V's P/E ratio of 100.4 is above the industry average of 16.25. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Over the past quarter, the stock price has risen to $137.55 from $130.84 on July 30, 2012. The stock saw one of its worst stretches when its price fell $6.07 per share between October 17, 2012 and October 24, 2012.
The Competition: Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world. The company's closest competitor in the consumer financial services industry, MasterCard (MA), will report earnings on October 31, 2012. Analysts are expecting earnings of $5.93 per share for MasterCard, up 5.3% from last year's earnings of $5.63 per share. Analysts are more optimistic about Visa than about MasterCard. Only 22 out of 29 analysts rate the latter a buy compared to 23 of 29 for the former.
by
Investopedia Staff
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