Categories AlphaGraphs, Earnings, Finance, LATEST

Visa Q4 earnings top estimates while revenue comes in line

Visa Inc. (V) topped market estimates on earnings for the fourth quarter of 2018 while revenues came in line with expectations. The stock was up 2.12% in aftermarket hours.

Net operating revenues rose 12% to $5.4 billion, driven by continued growth in payments volume, cross-border volume and processed transactions. On a GAAP basis, net income grew by more than 30% to $2.8 billion or $1.23 per share from the prior-year period. Adjusted EPS grew 34% to $1.21.

Visa fourth quarter 2018 Earnings Infographic
Visa Q4 2018 Earnings Infographic

Visa saw double-digit growth in key business metrics such as payments volume, cross-border volume and processed transactions during the quarter. The company also posted increases across all its revenue categories.

Service revenues for the fourth quarter increased 10% year-over-year to $2.3 billion. These are recognized based on payments volume in the prior quarter. Client incentives totaled $1.5 billion in the quarter.

Earnings Preview: Payments volume might power Visa’s growth in Q4

Visa is investing in strategic partnerships to accelerate digital payments growth and to increase the security for digital transactions. The company is also preparing to launch the B2B Connect platform in the first quarter of 2019. B2B Connect intends to provide financial institutions with a secure way to conduct cross-border business-to-business payments.

For the full year of 2019, net revenue is expected to grow in the low double-digits on a nominal basis, with approx. 1% of negative foreign currency impact. Annual diluted class A common stock EPS is expected to grow in the high teens on a GAAP nominal dollar basis and mid-teens on an adjusted, non-GAAP nominal dollar basis.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Macy’s (M), Target (TGT), Dollar Tree (DLTR): Major retailers and a costly holiday season

The holiday season has started and it is the time for cheer but this year inflation is proving to be a major spoilsport for the festivities. As customers struggle to

Here’s a look at Dollar Tree’s (DLTR) expectations for the remainder of the year

Shares of Dollar Tree Inc. (NASDAQ: DLTR) were down over 1% on Wednesday, a day after the company reported earnings results for the third quarter of 2022. Revenue and earnings

Target Corporation (TGT): A look at how the retail giant is shaping up against an inflationary backdrop

Shares of Target Corporation (NYSE: TGT) were up over 1% on Wednesday. The stock has dropped 30% year-to-date and 35% over the past 12 months. Last week the company reported

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top