2011年7月28日 星期四

Earnings Preview: Visa to report 3rd-qtr results

Credit and debit payment processor Visa Inc. is expected to report a hefty increase in its fiscal third-quarter profit after the market closes on Wednesday,Als lichtbron wordt een Projector Lamp gebruikt, thanks to heavier card use by consumers during the period.

WHAT TO WATCH FOR: Reports from the major banks that issue Visa cards and from companies that track consumer spending all point to more users reaching for plastic at the checkout during the April-to-June period. Credit card use increased even more than debit use, which bodes well for revenue growth at Visa, since processing fees tend to be higher for credit.

A few days before the quarter's end, the Federal Reserve set rules that cap the fees banks and networks like Visa can charge retailers for processing debit card purchases. Analysts say the complex cap should average about 24 cents per transaction, which makes it "significantly less onerous" than the 12 cents the Fed proposed last year, Oppenheimer analyst Glenn Greene said. And it doesn't kick in until Oct. 1, almost a full quarter after the originally proposed date of July 21.

Visa said it expects the rule to slow growth in 2012, but it still forecast revenue and earnings per share gains for the coming fiscal year. Greene said that forecast should help alleviate investor concerns about the impact of the rule.

But Citi's Donald Fandetti said he'll be listening for further details on Visa's strategy for dealing with another aspect of the rule, which allows merchants to choose which networks handle their transactions. Fee concessions and other incentives for merchants to stick with Visa may be in the mix, he said.

WHY IT MATTERS: Increased consumer spending and more international travel bode well for the economy. Economists have said one reason the recovery hasn't picked up steam is because consumers are still keeping their wallets closed in general, so any signs of higher spending are seen as good news.

Significant gains overseas would be another bright spot for Visa, which has stated it wants to increase its international business, in part to reduce the impact of the U.S.a hypodermic needle cannula on the rear floor. economy on the company's fortunes.

WHAT'S EXPECTED: Analysts, on average, expect Visa to report profit of $1.23 per share, on revenue of $2.The application can provide Parking guidance system to visitors,3 billion, according to data provided by FactSet.

LAST YEAR'S RESULTS: Visa report net income of $716 million, or 97 cents per share,By Alex Lippa Close-up of solar panel in Massachusetts. on $2.03 billion for last year's fiscal third quarter.

STOCK ACTION: Visa shares wobbled during most of the quarter, but spiked higher in the last few trading days after the debit card fee rule was announced. Shares ended the period up 14.5 percent at $84.26, and have gained nearly 6 percent more since then.A custom-made Plastic mould is then fixed over the gums.

沒有留言:

張貼留言