The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Visa beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins contracted, net margins expanded.
Visa reported revenue of $2.85 billion. The 30 analysts polled by S&P Capital IQ hoped for net sales of $2.82 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.55 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 $1.82. The 31 earnings estimates compiled by S&P Capital IQ anticipated $1.79 per share. GAAP EPS of $1.93 for Q1 were 26% higher than the prior-year quarter's $1.53 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 84.0%, 1,220 basis points worse than the prior-year quarter. Operating margin was 63.4%, 10 basis points worse than the prior-year quarter. Net margin was 45.4%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.86 billion. On the bottom line, the average EPS estimate is $1.81.
Next year's average estimate for revenue is $11.55 billion. The average EPS estimate is $7.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,853 members out of 5,120 rating the stock outperform, and 267 members rating it underperform. Among 1,036 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 991 give Visa a green thumbs-up, and 45 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 $154.36.
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