Earnings Preview: Visa

Visa (V) is expected to report Q3 earnings after market close Wednesday, July 30, with a conference call scheduled for Wednesday, July 30 at 5:00 p.m. ET.

Guidance

Analysts are looking for EPS of 48c on revenue of $1.55B. The consensus range for EPS is 42c to 54c, while the consensus range for revenue is $1.50B to $1.63B, according to First Call.

Analyst Views

Several research firms recently issued bullish notes on Visa. J.P. Morgan recently previewed Visa's results by predicting that the credit card company's pricing initiatives on U.S. crossborder transactions will more than offset its slower growth within the U.S. The firm recommends buying the shares before the company releases its results and they maintained their Overweight rating.

Meanwhile, Keybanc initiated Visa with a Buy rating and a $94 target. KeyBanc believes Visa has several significant strengths including its recurring revenue model, significant pricing power, lack of consumer credit risk, and its operating leverage.

Finally, UBS reported that their checks suggested that Visa would continue to grow while enjoying higher than expected margins. The firm's checks indicated that Visa's volumes stayed robust last month, and the firm is bullish on the company because they anticipate that it will report stronger than expected results. Moody's last month assigned Visa an A1 issuer credit rating, with a stable outlook.

Comments

[Jake Blues:]

The sooner people stop lumping V in with the Financials the better.

2008 Jul 29 03:48 PM

[ggbbppl:]

visa is where you want to be

2008 Jul 29 03:50 PM

[User 172125:]

Steve- you are getting a little ahead of yourself buddy...

We like your article (except the interchange error you made)- and I'll go out on a limb here and say that Keybanc didn't initiate coverage with a buy rating because of your post... :)

Jake- V I don't know why you would say that - are you a V shareholder?

We have been covering Visa since its IPO- and we are the only blog on the internet devoted to Visa and the plastic revolution.

We are giving seeking alpha a perma-link on our new investor site.

We are also one of the only non-profit financial blogs. You won't see any tacky banner ads either. All of our members are V shareholders. If you want more info about Visa:

www.visawinners.com

2008 Jul 29 04:27 PM

[User 172125:]

Good luck tomorrow to everyone holding V shares.

Gool luck on Thursday to those of you holding MA shares.

2008 Jul 29 04:28 PM

[pitaking:]

I'm not big on holding shares into earnings, but with the serious institutional money from the ipo still in stock the "coincidental" upgrades today, we are going to see another strong pop tommarow and I like the chances for a move into the 80's after earnings. The finish above 75 on the technicals looks good too, that had been resistance on several occasions. V is still a buy

2008 Jul 29 04:46 PM

[phdinsuntan...:]

this V still holds on global growth,
but what a great day to short C !

2008 Jul 29 04:48 PM

[Jake Blues:]

V Winner> "I don't know why you would say that - are you a V shareholder?"

Yes, from almost the beginning. And again I say, V is not a financial stock.

2008 Jul 29 05:26 PM

[Tavares:]

I own 100 shares of V @ 70.55 been jumping in and out of it taking profits, but I think I found a home for a few years now with my position.

2008 Jul 29 05:33 PM

[User 172125:]

Jake- I'm sorry- too much time on the computer. I read your line earlier as "the sooner people START lumping V in with the financials the better".

Man- now I know i've had enough. Time for a red bull-

I'm toast -

2008 Jul 29 06:30 PM

[mrbill for V:]

DON'T FORGET THE DIVIDEND

2008 Jul 29 09:57 PM

[User 172125:]

Mr Bill- Thank YOU! A positive.

No, I won't forget the Dividend- and although its not huge it is a plus..

V looking good today- 15 minutes in hovering in the 77$ range....

2008 Jul 30 09:48 AM

[User 172125:]

V = Vindication.............. estimates by a considerable amount- did well in virtuall all categories- only poor guidance can slow this goliath down--

Be back after the conference call @ 5 (link on our site)

Jon

2008 Jul 30 04:34 PM

[User 172125:]

Check our site for latest results:

www.visawinners.com

2008 Jul 30 05:30 PM