Send to a Friend Font Size: Increase Decrease

10 Stocks With Explosive Earnings Growth: No 4 Visa (V)

More News related to V

Visa and SHPS, Inc. Renew Relationship Bringing the Convenience of Visa Payments to Employee Benefit Participants
After Early Weakness Mastercard (MA), Visa (V) Rally Higher
UniRush Financial Services and Visa Extend Prepaid Relationship
U.S. Bank Offers Visa Mobile Application to Cardholders
Mandel's Lone Pine Capital Picks Up More of a Major Bank, Gets New Shares of a Smartphone Maker and Lowers Stakes in the Credit Card Processors

More News related to V

More News related to Insiders' Blog

July 9, 2009 5:48 PM EDT

In the current difficult macroeconomic environment it is hard to find companies that are earning a meaningful profit, let alone growing earnings. But these 10 stocks have been rewarding investors with explosive earnings growth and stock performance to boot. You can track the entire series here.

Number 4: Visa (NYSE: V)

Headquartered in San Francisco, Visa operates the world's largest retail electronic payments network and manages the world's most recognized global financial services brand. Visa has more branded credit and debit cards in circulation, more transactions and greater total volume than any of its competitors.

Visa owns a family of well known, widely accepted payment brands, including Visa, Visa Electron, PLUS and Interlink, which they license to customers for use in their payment programs.

Visa came public in March 2008, after reorganizing from a private, for profit association.

Earnings Growth:
For the six months ended March 31, 2009, Visa grew its EPS 56% to $1.45. For the three months ended March 31, 2009 grew its EPS 82% to $0.71 on a GAAP basis.

Earnings Prospects:
Analysts on average see Visa earning $2.81 per share this year (FY09), which is up 193% from the $0.96 earned last year (FY08)!

Next year (FY10), analysts on average see Visa earning $3.34 per share, which would represent growth of 19%. The Street high estimates for FY10 is $3.78, which would represent earnings growth of 35%!

With a shift secular shift toward payments with plastic, solid revenue growth and margin expansion, Visa will continue to show explosive earnings growth for years to come.

Stock Performance:
YTD shares of Visa are up 15.2%, versus a 2.3% slide in the S&P 500. Over the last year, shares of Visa are down 20.3% versus the 29.1% slide in the S&P 500. Visa came public in March 2008 at $44 per share and is up 37% from that price, versus the 33.6% slide in the S&P 500.