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Banking, finance, and taxes

Visa’s Earnings Cheer: “Charge!” (V)

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By Douglas A. McIntyre Updated Published
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Visa_logoCredit card clearing and processing giant Visa Inc. (NYSE: V) just posted earnings with an adjusted $0.59 EPS on $1.6 Billion in revenues.  First Call had estimates pegged at $0.48 EPS on $1.55 Billion.  Even if you use GAAP estimates for financials, the company posted $0.51 EPS.

Despite a weak consumer, which everyone believes Visa is immune from entirely, Visa is raising its 2008 targets.  Its sees adjusted operating margin in the mid-40% range.  The company is going out on a limb and calling for 2009 and 2010 to see adjusted operating margins in the mid to high 40% range.

Through 2010 the company is targeting annual revenue growth of 11% to15% and is calling for earnings per share growth of some 20% for thesame period.  Also through 2010, we are seeing annual free cash flowtargets of more than $1 Billion.  All targets reflect GAAP tax rates of41% in 2008 and 35% to 36% over the next five years.

Visa shares closed up over 3% today at $78.45, and shares are mostly flat after the close.

Jon C. Ogg
July 30, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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