Filed Under: ,
Tickers in this Article: V
Visa (NYSE:V) announced its results for the most recent quarter on July 25, 2012. Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Can Earnings Guidance Accurately Predict The Future?

The Numbers: Visa beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of $1.56 per share versus the $1.45 per share estimate and revenues of $2.56 billion versus the $2.52 billion estimate. Diluted EPS for the quarter was a loss of $2.74 per share. Revenue climbed 10.5% from the same period last year. Visa has averaged revenue growth of 13.2% over the past five quarters. Visa reported a net loss of $1.84 billion during the third quarter. The company's loss in the latest quarter comes after the company reported profits in the three prior quarters.

Management Quote: "Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the U.S., executing on our strategy of growing the electronification of payments worldwide. We are pleased that we were able to come to a resolution in the merchant litigation which was acceptable to most parties while ensuring the long-term health of the U.S. payments industry," said Joseph Saunders, chairman and chief executive officer of Visa Inc. "As we look forward, we remain focused on launching new payment solutions and products for our financial and merchant partners and consumers, while supporting the Visa brand and the advancement of electronic payments."

Looking Ahead: Over the past 90 days, the average estimate for the fourth quarter has fallen from $1.53 per share to $1.51, indicating that analysts are growing pessisimistic about the company's performance next quarter. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. Over the past three months, the average estimate for the fiscal year has climbed from $5.97 per to share to $6.06.

comments powered by Disqus

Trading Center