Visa Inc. (NYSE: NYSE:V)
Visa, the behemoth credit card issuer and ubiquitous credit card used worldwide for purchases, cash advances and merchandise payment, announced their fiscal quarterly earnings on July 20th after the market closed for trading. Earnings came in substantially better than what analysts had been expecting.
The analysts had been expecting on the order of $.81 cents per share with a revenue of $4.36 billion. However, Visa reported that they had earnings of $0.86 per share on revenue of $4.57 billion dollars.
The company also raised their full-year profit forecast- indicating that earnings may now increase by a few more percentage points than they expected it to.These are the kind of earnings beats that usually move the stock much higher in the after market trading session.
However, shares which traded down $0.14 closing at $98.11 in the regular session closed only fractionally higher at $99 in the after market trading session.
Company/Analysts Comments
Alfred Kelly, Visa’s CEO said this on the conference call,
“We continue to see strong consumer confidence, which has driven strong spending growth,”
Jefferies analysts reiterated their “buy” opinion on July 18th and stated that they expect the price to rise to between $104-$112.
Visa Chart
The above price chart shows the daily trading history going back to the middle of March of this year. You can see the strong up trending line that price has followed as it has moved higher and retested its 50 period moving average on at least three occasions which is highlighted by the three oval areas in shaded regions.
The above price chart shows the intraday 5 minute trading action on the left and then the aftermarket 5 minute trading action on the right. You can see how the shares jumped up quickly just after 4 p.m. and then receded back down to only slightly higher levels in the after-hours session.
Profile
Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants.
The company also offers gateway services for merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products.
In addition, it provides digital products, including Visa Checkout that offers consumers an expedited and secure payment experience for online transactions; and Visa Direct, a push payment product platform, which facilitates payer-initiated transactions that are sent directly to the Visa account of the recipient, as well as Visa token service that replaces the card account numbers from the transaction with a token.
Further the company offers corporate (travel) and purchasing card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands.
The company has a strategic partnership agreement with Oman Arab Bank to convert the bank’s current electron cards to chip-and-PIN debit cards. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.