Visa -4% but analysts say the long-term story remains intact

Visa (V -4.3%) sinks after beating Q1 earnings forecasts but warning that revenue would slow in Q2 due to sanctions imposed on Russia and a stronger dollar.

But analysts largely remain upbeat for the longer term: Pacific Crest says Q1 results were hurt by "a series of idiosyncratic events," and growth should accelerate in H2 2014, while Stifel says underlying trends are strong and shares should outperform beginning in FY 2015.

Jefferies calls the results a "modest bump in the road," encouraged by recovery in most April metrics and higher operating margin guidance, but notes that the uncertainty around Russia could weigh on MasterCard’s (MA -4.7%) results when it releases earnings on May 1.

As the largest component of the Dow, Visa's stock price movement is having an outsized effect; DJIA -141.

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Comments (4)
  • gap123
    , contributor
    Comments (295) | Send Message
    I bought some V today...
    25 Apr 2014, 09:46 PM Reply Like
  • DougRk
    , contributor
    Comments (1902) | Send Message
    8x 2016 revenue, with growth averaging 10% a year forward. Margins are incredible of course, but still seems rich to me.
    27 Apr 2014, 12:49 AM Reply Like
  • somedata1
    , contributor
    Comments (2005) | Send Message
    It's always expansive with its strong competitive advantage / wide moat and zero debt. Not a bad time to buy for a long term investor.
    27 Apr 2014, 10:00 PM Reply Like
  • Tradevestor
    , contributor
    Comments (5014) | Send Message
    28 Apr 2014, 07:50 PM Reply Like
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