Thursday, April 29, 2010


Analysts were expecting Visa, Inc. (V) earnings to come in at $0.91 per share for last quarter, but V beat expectations with actual earnings of $0.96---5 cents above the consensus estimate.
Today's announcement shows that V has made some year-over-year improvements. The company reported gains of $808.55 million last quarter compared with net gains of $614.84 million during the same quarter a year ago.
During the next five years, analysts expect the earnings-per-share (EPS) growth rate in the industry to be 16.79 percent. If you compare V's projected EPS growth rate of 20 percent to that of the industry, you can see that analysts expect V to outperform the industry in the future by 3.21 percent.

Visa has beaten expectations every earnings season since we have purchased this stock in April of 2009. The company has projected EPS growth of 20% over the next few years and Visa is currently on on track to do this. They have already reported $2.00 per share for half of this year and will beat the $3.10 Visa earned for FY 2009.

-Richie Civello

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