by Ian Harvey
October 25, 2019
Visa reported fourth quarter earnings that beat analysts' expectations on Thursday and revenue that topped forecasts.
“Stock Options Made Easy” members made potential profits of 51% before earnings and more expected today!
Are you missing out on these profits? Why not join us and benefit as well!
The credit card operator released its third-quarter numbers after the market closed yesterday, Thursday, October 24. Before the report, and at the beginning of trade yesterday, the stock price was $171.32; and we entered the options trade at $3.25. By close of trading the price had risen $4.84, or 2.83%, sitting at $176.16; providing “Stock Options Made Easy” members with a potential profit of 51%.
Then, Visa stock rose in aftermarket trading after the payments company reported better-than-expected earnings and revenue, while cross-border payments volumes grew at a slightly slower pace than expected.
Visa stock gained 1.3% in recent after-hours trading.
Shares have gained 34% so far this year, compared to the Dow Jones Industrial Average which has risen 15%.
A NICE PROFIT!
The Earnings Results.....
The payments giant finished out its fiscal year with adjusted earnings per share of $1.47 for the fourth quarter, up from $1.21 in the year-earlier period and ahead of the $1.43 that analysts had been predicting.
Revenue climbed to $6.1 billion from $5.4 billion, matching the FactSet consensus of $6.1 billion.
The Recommended Trade on Visa.....
Credit card operator Visa Inc (NYSE: V) is expected to release its third-quarter numbers after the market close Thursday, October 24. According to estimates, the consensus for Visa is EPS of $1.43 on $6.08 billion in revenue. The street expects another positive earnings surprise with a whisper number of $1.47 for the quarter. During the same period last year Visa earned $1.21 and reported sales of $5.4 billion.
According to history, the company tops EPS estimates 96% of the time, and sales estimates 89% of the time.
Shares of the credit card company have gained 35% this year,
outperforming the S&P’s 20% gain, but recent weakness is leading some
analysts to lower their estimates ahead of earnings.
**The Option Trade to Consider: Buy the V NOV 15 2019 175.000 CALL at approximately $2.25.
This options trade resulted in a 51% potential profit for our position within a few hours!
YOU NEED TO BE IN TO PROFIT!
Join us today and see what future trades will be recommended!
For the fiscal year ahead, Visa expects low double-digit revenue growth and a negative-1% to negative-1.5% impact from foreign currency. It also projects a roughly 0.5% positive impact from acquisitions. On earnings, the company is calling for mid-teens growth, a 1% to 1.5% negative foreign-currency impact, and a negative acquisition impact of about 1%. The company’s outlook assumes stability in economic conditions.
The outlook served as “the real bright spot,” wrote Baird analyst David Koning. Keefe, Bruyette, and Woods analyst Sanjay Sakhrani said that he “came away from the conference call feeling like the underlying volume growth remains intact and the set up for next year (and beyond) is positive.”
The company said it will have renewed a third of its volume during the three quarters spanning from the just-completed fourth quarter of fiscal 2019 to the second quarter of fiscal 2020, which Chief Financial Officer Vasant Prabhu called “an unprecedented level of renewal activity” as the company saw some opportunities for early renewals with clients such as Chase in addition to its scheduled renewals.
Where to now?.
The company expects to continue benefiting from pricing actions taken in fiscal 2019 as well as some new moves on pricing in 2020 that should be smaller in magnitude.
Visa also highlighted some events that could help support revenue and volume growth, including the Tokyo Olympics in summer 2020.
Prabhu spoke as well about Visa’s positioning in Europe more than three years after its deal for Visa Europe closed. He sees “lots of opportunity to grow” in markets like Germany, Spain and Italy, as well as an overall chance to improve credit penetration in Europe, as debit is still prominent. “The acquisition has been nothing short of a home run for us,” he said, pointing to accretion in the double digits.
Where to now for Visa?
Will we recommend another options trade on Visa?
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!