The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Visa beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins grew across the board.
Visa recorded revenue of $2.55 billion. The 29 analysts polled by S&P Capital IQ predicted revenue of $2.47 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $2.24 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.49. The 33 earnings estimates compiled by S&P Capital IQ forecast $1.45 per share on the same basis. GAAP EPS of $1.53 for Q1 were 23% higher than the prior-year quarter's $1.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 84.7%, 70 basis points better than the prior-year quarter. Operating margin was 63.5%, 250 basis points better than the prior-year quarter. Net margin was 40.4%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is $1.48.
Next year's average estimate for revenue is $10.16 billion. The average EPS estimate is $5.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,694 members out of 4,946 rating the stock outperform, and 252 members rating it underperform. Among 963 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 915 give Visa a green thumbs-up, and 48 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Visa is outperform, with an average price target of $106.82.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.