Visa, Inc. (NYSE:V) Information Technology -- IT Services | Reports April 21, After Market Closes
Key Takeaways
- The Estimize consensus is calling for EPS of $0.68, down 5% in the past 3 months, on revenue expectations of $3.57 billion, 2 cents and $6 million higher than Wall Street
- Visa recently agreed to purchase its European counterpart, Visa Europe, in a deal valued as high as $23.4 billion
- To top it all off, Visa closed a partnership with Costco after the wholesaler severed ties with American Express
Days following Discover (NYSE:DFS) and American Express’s (NYSE:AXP) reports, we get earnings from Visa. The largest of the 4 major credit companies, Visa is scheduled to report fiscal second-quarter results Thursday after the market closes. Lately, earnings have been either up or down while revenue has steadily increased in each of the past 8 quarters. Expectations have been tepid heading into this current earnings results, highlighted by a few concerns and bright spots. The Estimize consensus is calling for EPS of $0.68, down 5% in the past 3 months, on revenue expectations of $3.57 billion, 2 cents and $6 million higher than Wall Street. Compared to a year earlier, estimates forecast a 7% increase on the bottom line and 5% increase on the top. On average, the stock has been mixed leading up and through earnings. In the immediate days prior shares have typically fallen 1% but slowly turn positive through earnings and 30 days following. 
Late last year Visa made headlines when it announced they had agreed to purchase their European counterpart in a deal valued as high as $23.4 billion. The deal unifies the Visa and Visa Europe brands after the companies parted ways 8 years prior. Its expected that Visa will expand net revenue by 9% in the fiscal 2016, ending in September, primarily driven by the upcoming Visa Europe acquisition. Meanwhile organic top line growth is beginning to stabilize after years of weak consumer spending. Accelerated retail trends versus the December quarter on top of recovering FX headwinds have been encouraging this season. Looking forward, V expects easier comparisons with respect to emerging markets, which are rapidly adopting mobile and electronic payments. To top it all off, Visa recently closed a deal with Costco (NASDAQ:COST) after the wholesale retailer severed ties with previous partner, American Express. The deal is set to get underway this June, soon after the American Express deal expires.
Do you think V can beat estimates?