Banking, finance, and taxes
Visa Slides Despite Earnings Beat
Published:
Last Updated:
Visa Inc. (NYSE: V) reported fiscal fourth-quarter financial results after markets closed Monday. The company posted $0.78 in earnings per share (EPS) and $4.3 billion in revenue. There were consensus estimates from Thomson Reuters that called for $0.73 in EPS on $4.23 billion in revenue. The same period from last year had $0.62 in EPS and $3.57 billion in revenue.
Payments volume growth, excluding Visa Europe and on a constant dollar basis, for the quarter was up 10% over the prior year at $1.3 trillion. Payments volume growth, including Visa Europe and on a constant dollar basis increased 47% to $1.9 trillion.
During the quarter, Visa repurchased 20.5 million shares of common stock, at an average price of $80.76 per share, worth a total of $1.7 billion. There is $5.7 billion remaining in the repurchase program authorized by the board of directors.
In terms of guidance for the coming year, the company expects net revenue growth in the range of 16% to 18%, and adjusted EPS growth in the mid-teens. There are consensus estimates calling for $3.32 in EPS and $18.04 billion in revenue for the coming year.
Charlie Scharf, CEO of Visa, commented:
We continue to deliver healthy earnings growth in the face of continued, but abating headwinds. We have begun to see the benefits from our acquisition of Visa Europe and strong cost discipline helped our results. At the same time, we are unwavering in our commitment to invest in client partnership opportunities and the further build out of our digital payments capabilities.
Scharf added:
As we enter fiscal 2017, we are positioned well as revenue headwinds will continue to ease, we will continue to see the benefits from Visa Europe in our results, and our strong client franchise continues to grow.
Shares of Visa closed Monday up 1% at $83.17, with a consensus analyst price target of $92.43 and a 52-week trading range of $66.12 to $83.79. Following the release of the earnings report, the stock was initially down 1% at $82.25 in the after-hours session.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
