Thursday, February 5, 2009

Visa Earnings

Visa's net income rose 35% over last year. Revenue rose 17% over last year. The earnings were a bit of a suprise as financial companies have struggled in this economy.

Debit transactions increased 18% and credit transactions increased 10%.

International presence continues to help the company. Volume rose 4% in Central Europe, the Middle East and Africa. Volume was up 27% in Latin America nd the Caribbean. Volume also rose in the Africa region by 20%. In America volume was up only 7.1%.

Visa doesn't actually issue credit it is done through the banks. The company doesn't have as much risk as a bank. But with banks giving out less credit, transactions were expected down a bit.

2009 earnings are expected at $2.62 per share. This is about 19 to 20 times earnings for this next year.

The stock is a decent buy right now since the company is calling for 20% growth through at least 2010. I had previously put a price target of $80 by February of 2009. I back that guidance with late February or early March as a goal.

Shares today trade at: $53.60
Target price 03/09: $80

1 comment:

  1. Good article and very valuable information. Keep it up!