It's Showtime for Visa

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Visa (NYS: V) is expected to report Q4 earnings on Oct. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Visa's revenues will expand 12.1% and EPS will grow 18.1%.

The average estimate for revenue is $2.67 billion. On the bottom line, the average EPS estimate is $1.50.


Revenue details
Last quarter, Visa recorded revenue of $2.57 billion. GAAP reported sales were 10% higher than the prior-year quarter's $2.32 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.56. GAAP EPS were -$2.74 for Q3 against $1.47 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 83.0%, 140 basis points worse than the prior-year quarter. Operating margin was 58.1%, 20 basis points better than the prior-year quarter. Net margin was -71.7%, 11,500 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $10.35 billion. The average EPS estimate is $6.15.

Investor sentiment
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 1,006 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 956 give Visa a green thumbs-up, and 50 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 $133.38.

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The article It's Showtime for Visa originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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