Visa Inc. has reignited an interest of investors


Visa Inc. (NYSE-V) stocks currently spark the interest of both private investors and global investment companies, thanks not only to their quarterly earnings report in comparison to other quarters of 2018, but also to fulfilling their expected increase in revenue throughout the whole year. It’s known, that Visa Inc. last yearly quarter tends to be the strongest in terms of revenue, due to Thanksgiving in the US and Christmas globally, to which are tied expenses such as presents, plane tickets and hotel bookings. This global company, facilitating electronic funds transfers via the largest global network of credit and debit cards, has marked an increase of total revenue by 15% equaling 5.2 billion USD and an increase of net profit by 13% equaling 2.3 billion USD, since the corresponding quarter of the last year. Visa Inc. (NYSE-V) stock was valued 149.24 USD on 20th of September, with an increase of 1.23% that day.

Visa Inc. (NYSE-V) was founded 59 years ago as BankAmericard. Later, it changed its logo and name to Visa Inc. Its headquarters are in Forest City, California. Company offers a wide array of electronic funds transfers, including their own products which allow for a safe and quick money transfer between a seller and a customer paying via his bank, mainly via cashless transfer with a guarantee including several types of insurance and a safe use of payment system both for the card-using customer and the operator of the payment terminal. Visa Inc. (NYSE-V) is currently expanding into a controversial Arabian market, and already works together with primary Islamic banks such as Bank Emirates and Islamic Bank in the United Arabian Emirates. Their other extensive ties in Asia include ones with China, namely China Merchants Bank and Shanghai. Today, this company, as the major facilitator of global payment network of cards and other types including NFC technology for paying via smartphone, has roughly over 3.2 billion active payment capable devices.

Visa Inc. (NYSE-V) has also marked an increase of revenue in the third quarter of this year by 13%, to 2.2 billion USD, compared to the same quarter of the previous year. Revenue from procession of data increased by 19% in a year, equaling 2.4 billion USD. The amount of international transactions that are facilitated by Visa have also increased by 16%, up to 1.8 billion USD. During the third quarter of 2018, Visa Inc. has also bought 13.6 million of their common stock, costing the company 1.8 billion USD, for an average price of 128.80 USD per share, and since the beginning of the year, Visa has bought back 46 million of common stock, priced at 5.5 billion USD. Company has also publicly announced that they expect 2-digit increase in revenue with a year increase over 60% and increase of the clientele by roughly 21.5 up to 22%. These facts have sparked interest in both private investors and global investment companies, mainly in the company stocks. Company’s total revenue for the year 2017 equals 18.358 billion USD and EBITDA 12.144 billion USD. After the deduction of all the interests, taxes etc. the net profit was 6.699 billion USD. Total assets of the company are valued at 67,977 billion USD and the capital owned by the company is valued at 32.760 billion USD. Visa Inc. employs only 15,000 employees.

Visa Inc. (NYSE-V) pays out regular quarterly dividends to its shareholders. Current dividend yield is currently 0.56%, agreed on by board of directors to be valued at 0.84 USD per share. Thanks to these facts, where company marked a 15% increase in their turnover rate in their third quarter, making it 5.2 billion USD, but also due to the prospects of Visa in the whole year of 2018, where company expects increase of revenue by 60% and increase of 21.5% to 22% of the number of their customers, stocks of Visa Inc. became very alluring. Based on the latest estimates of financial analysts, we can expect both short-term and mid-term price of stock to increase, and the average expected price was set to 157.94 USD per share.

By: TipsForTrade