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Visa Reports Strong Fiscal 1Q18 Results

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Feb. 12 2018, Updated 10:00 a.m. ET

Estimates

Visa (V) posted EPS (earnings per share) of $1.08 in fiscal 1Q18, exceeding analysts’ estimates by $0.10.

Visa’s management was positive about its fiscal 1Q18 results due to the momentum in its revenue-generating metrics. Management pointed out that in the United States, there was strong momentum in spending thanks to the holiday season as well as growth in the e-commerce space.

Visa’s fiscal 1Q18 results were also aided by forward momentum in cross-border and payment volumes. This momentum was visible in processed transactions as well.

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Exceeding revenue estimates

Visa garnered revenue of $4.9 billion in fiscal 1Q18, exceeding estimates by $20 million. The company’s management is analyzing ways in which it can utilize the investment opportunities created by the new US tax law. Visa reported adjusted net income of $2.5 billion in fiscal 1Q18, a rise of 23% on a YoY (year-over-year) basis.

Visa posted GAAP (generally accepted accounting principles) net income of $2.5 billion in fiscal 1Q18, implying a rise of 22% on a YoY basis. The company awarded shareholders with returns of $2.2 billion through dividends and share repurchases.

Visa’s market cap stands at $274 billion, and its peers (XLF) Total System Services (TSS), Green Dot (GDOT), and Fiserv (FISV) have market caps of $15.9 billion, $2.9 billion, and $28.6 billion, respectively.

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