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S&P 500 (NYSE:SPY) component Visa (NYSE:V) will unveil its latest earnings today, October 31, 2012. Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world.
Visa Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.50 per share, a rise of 18.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.49. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.50 during the last month. Analysts are projecting profit to rise by 23.4% compared to last year’s $6.16.
Past Earnings Performance: Last quarter, the company beat estimates by 11 cents, coming in at profit of $1.56 a share versus the estimate of net income of $1.45 a share. It marked the fourth straight quarter of beating estimates.
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A Look Back: In the third quarter, the company swung to a loss of $1.84 billion ($1.92 a share) from a profit of $1 billion ($1) a year earlier, but beat analyst expectations. Revenue rose 10.5% to $2.56 billion from $2.32 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.39 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.87 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased more than twofold to $7.85 billion while assets rose 5.9% to $10.9 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 12.2% in revenue from the year-earlier quarter to $2.67 billion.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 12.9% over the last four quarters.
Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $10.09 (7.9%), from $127.46 to $137.55. The stock price saw one of its best stretches over the last year between October 9, 2012 and October 17, 2012, when shares rose for seven straight days, increasing 4.3% (+$5.82) over that span. It saw one of its worst periods between October 17, 2012 and October 24, 2012 when shares fell for six straight days, dropping 4.3% (-$6.07) over that span.
Analyst Ratings: With 23 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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