The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Visa beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins grew.
Visa reported revenue of $2.73 billion. The 31 analysts polled by S&P Capital IQ wanted to see a top line of $2.67 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.54. The 34 earnings estimates compiled by S&P Capital IQ predicted $1.50 per share. GAAP EPS of $2.05 for Q4 were 60% higher than the prior-year quarter's $1.28 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 82.8%, 90 basis points worse than the prior-year quarter. Operating margin was 55.8%, 140 basis points worse than the prior-year quarter. Net margin was 60.9%, 2,400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.81 billion. On the bottom line, the average EPS estimate is $1.78.
Next year's average estimate for revenue is $11.51 billion. The average EPS estimate is $7.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,816 members out of 5,081 rating the stock outperform, and 265 members rating it underperform. Among 1,003 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 952 give Visa a green thumbs-up, and 51 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 $139.28.
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