Visa (V) is expected to report Q4 earnings after the market close on Wednesday, October 26, with a conference call scheduled for 5:00 pm ET.
Guidance
The consensus estimate is $1.25 for EPS and $2.39B for revenue, according to First Call. In a note to investors on October 19, Oppenheimer predicted that Visa would report "strong but generally in-line" Q4 results. Recent data indicates that the company's fundamentals stayed healthy during the September quarter, and Visa should be able to successfully adapt to the Durbin Amendment, added the firm, which expects the credit card network's multiple to increase.
Analyst Views
Similarly, on October 7 Deutsche Bank initiated Visa with a Buy rating, and stated that the company is implementing a strategy that will enable it to benefit from the shift to electronic payments. The firm, which set a $107 target on the shares, expects the Durbin Amendment to reduce the company's FY12 by only 1%-2% in a worst-case scenario. Finally, in September Goldman Sachs upgraded Visa to Conviction Buy from Buy, citing what the firm saw as the company's strong secular opportunities and defensive earnings model. The firm set a $96 target on the shares.
