Banking, finance, and taxes
Visa Earnings, Outlook Impress Investors
Published:
Last Updated:
Visa Inc. (NYSE: V) reported fiscal fourth-quarter and full-year 2018 results after markets closed Wednesday. The credit card issuer posted quarterly adjusted diluted earnings per share (EPS) of $1.21 and revenues of $5.43 billion. In the fourth quarter of 2017, Visa reported adjusted EPS of $1.20 on revenues of $4.86 billion. Consensus estimates had called for EPS of $1.21 and $5.44 billion in revenue.
On a GAAP basis, Visa’s EPS totaled $1.23 per share and that includes $132 million in non-operating expense.
For the full year, Visa posted EPS of $4.61 on revenues of $20.61 billion. Consensus estimates called for revenues of $20.61 billion and adjusted EPS of $4.59.
CEO Alfred F. Kelly Jr. said:
We closed our fiscal year with strong momentum, delivering robust revenue and earnings growth fueled by double-digit increases in payments volume, cross-border volume and processed transactions. The major aspects of the Visa Europe integration concluded successfully with the completion of our platform migration and the shift to commercial client contracts. Aside from the impact of a stronger dollar, positive business trends remain intact as we enter our new fiscal year.
In the company’s outlook for the 2019 fiscal year, Visa forecast full-year net revenue growth in the low double digits with a negative impact of 1% on currency exchange effects. EPS growth was forecast in the high teens on a GAAP basis and in the mid-teens on an adjusted basis, including the 1% negative effect of currency exchange rates.
Analysts are looking for first fiscal quarter revenues of $5.46 billion and adjusted EPS of $1.27. For the full year, the consensus estimates call for revenues of $22.95 billion and adjusted EPS of $5.32.
Payment volume rose 11% year over year in the quarter and profits rose 33% to $2.8 billion. Net operating revenue rose 12%.
For the year to date, Visa shares have gained 17.8%, fifth-best among the Dow 30 stocks.
Visa’s stock traded up about 1.2% early Thursday to $135.91, after closing at $134.26 on Wednesday. The 52-week range is $106.60 to $151.56. The 12-month consensus analyst price target was $164.35 before last night’s report.
24/7 Wall St.Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
