Visa (V) Tops Q2 EPS by 1c
Visa (NYSE: V) reported Q2 EPS of $0.68, $0.01 better than the analyst estimate of $0.67. Revenue for the quarter came in at $3.6 billion versus the consensus estimate of $3.6 billion.
“Visa reported solid financial results in the fiscal second quarter. The continued headwinds of the strong U.S. dollar, lower oil prices, and an uneven global economy are driving continued weak cross-border spend, but domestic spend continues at reasonably strong levels consistent with last quarter. In fact, most of our growth metrics look very similar to what we saw last quarter. The U.S. consumer remains strong, but we see weakness in China, Brazil, and oil based economies. Since we are not seeing any material improvements in economic trends, we are cautious as we head into the second half of fiscal 2016. The continued headwinds we see do not take away from the underlying growth in our business and our continued conviction in the great opportunities to grow global penetration of electronic payments for years to come,” said Charlie Scharf, Chief Executive Officer of Visa Inc.
Financial Outlook for Fiscal Full-Year 2016:
Visa Inc. reaffirms its financial outlook for the following metrics for fiscal full-year 2016:
- Annual operating margin: Mid 60s; and
- Annual free cash flow: About $7 billion.
Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2016:
- Annual net revenue growth: 7% to 8% range on a constant dollar basis, with an expectation of about 3 percentage points of negative foreign currency impact;
- Client incentives as a percentage of gross revenues: High-end of the 17.5% to 18.5% range;
- Adjusted effective tax rate: About 30%; and
- Annual adjusted diluted class A common stock earnings per share growth: Low double-digits on a constant dollar basis, with an expectation of about 4 percentage points of negative foreign currency impact. This now includes interest expense of about $390 million, or over 9 cents of earnings per share, which equates to almost 4 percentage points of reduced year-over-year growth.
For earnings history and earnings-related data on Visa (V) click here.