New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
April 25, 2014
11:37 EDTMA, VVisa falls after revenue miss, analysts remain upbeat
Shares of Visa (V) are sinking after the company reported higher than expected second quarter profit but slightly lower than expected revenue. A number of analysts, however, remained optimistic about the stock. WHAT'S NEW: Visa reported second quarter earnings per share, excluding certain items, of $2.20, compared with analysts' consensus estimate of $2.18. The credit card network's revenue came in at $3.16B, versus the consensus estimate of $3.19B. "Softer net revenue growth was impacted by a strengthening U.S. dollar and difficult year-over-year comparisons due to non-recurring items," said Visa CEO Charlie Scharf. These negative factors will have a slightly greater impact in Visa's third quarter before easing in the fourth quarter, the CEO added. Visa guided to fiscal year EPS growth in a mid-to-high teen percentage and said it expects low double-digit constant revenue growth in the 10-11% range, with an expectation of two percentage points of negative foreign currency impact. Consensus for Visa's EPS and revenue for FY14 were $8.88 and $12.93B, respectively, prior to the update. ANALYST REACTION: In a note to investors earlier today, Stifel analyst Christopher Brendler wrote that the company's revenue miss was mostly caused by macro economic and foreign exchange issues. Visa's cost control efforts more than offset the impact of these issues, the analyst added. Moreover, the company's underlying trends are strong and it should outperform beginning in fiscal 2015, Brendler stated. He kept a $289 price target and Buy rating on the shares. Similarly, Pacific Crest analyst Josh Beck wrote that Visa's results were hurt by "a series of idiosyncratic events." Visa's growth should accelerate in the second half of 2014 and it can benefit from the proliferation of digital payments, the analyst stated. He kept a $241 price target and Outperform rating on the shares. PRICE ACTION: In late morning trading, Visa fell 4% to $200. Visa's top competitor, MasterCard (MA), fell 3.6% to $72. MasterCard is scheduled to report its results on May 1.
News For V;MA From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
June 30, 2015
19:32 EDTMA, VMasterCard stops processing Backspace.com ad purchases, WSJ says
Subscribe for More Information
June 23, 2015
07:15 EDTMAOppenheimer to hold a conference
Subscribe for More Information
June 19, 2015
06:42 EDTMA, VAmEx to stop restricting merchants from favoring rivals, WSJ reports
Subscribe for More Information

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use