What to Watch When Visa Reports

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Visa Inc. (NYSE: V) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Wednesday. The consensus estimates call for $1.20 in earnings per share (EPS) and $5.44 billion in revenue. The same period of last year reportedly had $0.90 in EPS and $4.86 billion in revenue.

In its most recent quarterly report, Visa reaffirmed its outlook for the 2018 fiscal year. The company expected to see annual net revenue growth in the low double-digits on a nominal basis and a positive currency exchange impact of approximately 1%. Visa expected its annual operating margin to be in the high 60% range on an adjusted basis and diluted EPS growth in the high 50% range and at the low end of the 20% range on an adjusted basis. Full-year 2017 adjusted EPS totaled $3.48.

For the full year, the consensus estimates call for revenues of $20.61 billion and adjusted EPS of $4.59.

Also in the fiscal third quarter, the company noted that payment volume rose 11% year over year and profits rose 13% to $2.33 billion. Net operating revenue rose 15%. Visa expects to spend about $60 million in the current fiscal year to complete the integration of Visa Europe. The company purchased Visa Europe in 2016 for about $23 billion.

Visa has outperformed the broad markets, with its stock up about 29% in the past 52 weeks. In just 2018 alone, the stock is up only 22%.

Prior to the release, a few analysts weighed in on Visa:

  • Credit Suisse has an Outperform rating and a $164 price target.
  • Wells Fargo has an Outperform rating with a $175 price target.
  • BMO Capital Markets has an Outperform rating with a $187 target.
  • Goldman Sachs has a Buy rating and a $160 target price.
  • Merrill Lynch’s Buy rating comes with a $163 price target.
  • Robert Baird has an Outperform rating with a $162 target.

Shares of Visa were last seen at $138.49, with a consensus analyst price target of $164.65 and a 52-week trading range of $106.60 to $151.56.

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