Visa beats by $0.05, beats on revs; sees FY18 adj. EPS growth at high end of mid-teens; (108.41)
- Reports Q4 (Sep) earnings of $0.90 per share, $0.05 better than the Capital IQ Consensus of $0.85; revenues rose 13.9% year/year to $4.86 bln vs the $4.63 bln Capital IQ Consensus, driven by continued growth in payments volume, cross-border volume and processed transactions.
- Payments volume growth, on a constant dollar basis and excluding Europe co-badge volume, was 10% over the prior year. Cross-border volume growth, on a constant dollar basis, was 10% over the prior year. Total Visa processed transactions increased 13% over the prior year.
- FY18 guidance: Annual net revenue growth of high single digits on a nominal dollar basis (consensus +8.6%), with ~0.5 to 1 ppt of positive FX impact; Client incentives as a percentage of gross revenues: 21.5% to 22.5% range; Annual operating expense growth: Mid-single digits adjusted for special items in fiscal 2017; Annual operating margin: High 60s; Effective tax rate: About 29%...
- Annual diluted class A common stock earnings per share growth: Mid-40's on a GAAP nominal dollar basis and high end of mid-teens on an adjusted, non-GAAP nominal dollar basis (consensus +15% to $3.43), both including ~1 to 1.5 ppts of positive foreign currency impact.