Visa's Upcoming Earnings: What You Need To Know

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Visa (NYS: V) is expected to report Q1 earnings on Feb. 6. 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 10.6% and EPS will grow 20.1%.

The average estimate for revenue is $2.82 billion. On the bottom line, the average EPS estimate is $1.79.


Revenue details
Last quarter, Visa booked revenue of $2.73 billion. GAAP reported sales were 15% higher than the prior-year quarter's $2.38 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 $1.54. GAAP EPS of $2.47 for Q4 were 93% higher than the prior-year quarter's $1.28 per share.

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 95.9%, 30 basis points better than the prior-year quarter. Operating margin was 55.8%, 140 basis points worse than the prior-year quarter. Net margin was 60.9%, 2,400 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $11.54 billion. The average EPS estimate is $7.25.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,844 members out of 5,114 rating the stock outperform, and 270 members rating it underperform. Among 1,043 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 996 give Visa a green thumbs-up, and 47 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 $139.28.

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The article Visa's Upcoming Earnings: What You Need To Know 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 recommends 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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