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Why Visa Saw Strong Performance in Fiscal 4Q17

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Numbers above analysts’ estimates

Visa (V) announced its fiscal 2017 results and its fiscal 4Q17 earnings report on October 25. The consumer financial giant reported strong numbers in fiscal 4Q17. It managed to report earnings per share or EPS of $0.90, which was well above the Wall Street analyst estimate of $0.85.

Visa managed to post revenues of $4.86 billion in fiscal 4Q17, which was also above Wall Street analysts of $4.63 billion. The company managed to garner net operating revenues of $18.4 billion in fiscal 2017, which implies a YoY rise of 22%. This rise came on the back of growth in the company’s processed transactions and payments volume.

However, Visa Europe and growth in cross-border volumes have also contributed to the YoY rise in net operating revenues in fiscal 2017.

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Fiscal 2017 numbers

Visa managed to report service revenues amounting to $8 billion in fiscal 2017, which reflects the substantial YoY rise of 18%. During the same period, the company has managed to generate data processing revenues of $7.8 billion, which reflects a YoY rise of 24%.

Visa managed to generate a return of 11.61% on its assets on a trailing-12-month or TTM basis. On the other hand, other consumer financial players (XLF) Discover Financial Services (DFS), Mastercard Incorporated (MA), and PayPal Holdings (PYPL) generated returns of 2.55%, 21.51%, and 3.24%, respectively, on their assets on a TTM basis.

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