Visa Hits 52-Week High On Strong Q2 Earnings, Recent Deals
Zacks Investment Research | Aug 23, 2016 10:34PM ET
On Aug 23, 2016, shares of Visa Inc. (NYSE:V) hit a new 52-week high of $81.76 driven by strong third-quarter fiscal 2016 results. Investors seem to have been impressed with the company’s robust quarterly performance as about 9.8 million shares exchanged hands in the last trading session.
Visa’s fiscal third-quarter earnings of 69 cents per share beat the Zacks Consensus Estimate of 67 cents. Notably, the Zacks Rank #3 (Hold) Financial Transaction Services provider met expectations in all of the last four quarters with an average beat of 1.87%
The robust quarterly results were supported by a 6% year-over-year increase in revenues on a constant dollar basis. Also, adjusted operating expenses dipped 7% year over year due to control on personnel and marketing costs.
Investors are also optimistic about the company’s inorganic growth initiatives. The recent acquisition of Visa Europe strengthens its position in the payments market and will lend it a competitive edge as it anticipates Europe to be a $3.3 trillion payments market and a high growth region in the future. Visa expects Visa Europe to add 2–3% to earnings in fiscal 2017.
Another milestone achieved by the company is the agreement reached with PayPal Holdings, Inc. (PYPL) which ends years of acrimony between the players over digital payments. The deal will lead to higher transactions through Visa’s network.
Also, recent deals with TD in the United States and Canada for continued Visa credit and debit issuance helped the company to pave the way for long term growth. Regions Bank, Chevron (NYSE:CVX), Costco (NASDAQ:COST) U.S., Homeplus in South Korea, Taichung Bank in Taiwan, Mandiri in Indonesia bode well for the company's transaction growth and infuses investors’ confidence in the company.
VISA INC-A Price and Consensus
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.