Visa Wins Big on Big Bottom Line Beat

By Chris Lange Updated Jan 12, 12:48PM EST · Published Apr 20, 4:26PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Visa Wins Big on Big Bottom Line Beat — © Thinkstock

[cnxvideo id=”655420″ placement=”ros”]Visa Inc. (NYSE: V) reported fiscal second-quarter financial results after markets closed on Thursday. The company said that it had $0.86 in earnings per share (EPS) and $4.5 billion in revenue, versus consensus estimates from Thomson Reuters that called for $0.79 in EPS and $4.31 billion in revenue. The same period from last year had $0.68 in EPS and $3.63 billion in revenue.

Total Visa processed transactions were 26.3 billion, a 42% increase over the prior year, or 12% growth inclusive of Europe in prior year results. At the same time, payments volume growth, on a constant dollar basis, was 37% higher than in the prior year at $1.7 trillion.

In terms of the outlook for the full fiscal year, the company expects to see EPS growth in the high end of the mid-teens. The consensus estimates are calling for $3.32 in EPS and $17.79 billion in revenue for the 2017 fiscal year.

[nativounit]

During the fiscal second quarter of 2017, Visa also completed a legal entity reorganization of Visa Europe and certain other Visa subsidiaries to align its global corporate structure to the geographic jurisdictions in which it conducts business operations.

Visa returned approximately $2.1 billion of capital to shareholders in the form of share repurchases and dividends. The board of directors authorized a new $5.0 billion repurchase program for class A common stock. On the books, cash and cash equivalents totaled $6.43 billion at the end of the quarter, versus $5.62 billion at the end of the previous fiscal year.

Alfred F. Kelly, Jr., CEO of Visa, commented:

In the face of geo-political uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across nearly every part of our business. Robust growth in payments volume, cross-border volume and processed transactions drove better than expected results. Looking ahead, we are continuing our efforts across the globe to electronify commerce and digitize economies to the benefit of consumers and societies alike.

Shares of Visa closed Thursday up 1.6% at $91.15, with a consensus analyst price target of $98.48 and a 52-week trading range of $73.25 to $92.05. Following the release of the earnings report, the stock was up 2.4% at $93.35 in the after-hours trading session.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.