NEW YORK (TheStreet) -- Shares of Visa (V) were up 2.8% to $228.04 on Friday on the news that a federal appeals court has upheld an earlier Federal Reserve ruling that capped debit card swipe fees at 21 cents.
The ruling is a win for credit card and debit card manufacturers like Visa and MasterCard (MA) and a defeat for retailers who challenged the ruling. The transaction fees cost retailers billions of dollars every year.
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- The revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- V has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, V has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- VISA INC has improved earnings per share by 14.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VISA INC increased its bottom line by earning $7.58 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($8.89 versus $7.58).
- The gross profit margin for VISA INC is rather high; currently it is at 69.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 44.59% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 154.56% to $1,541.00 million when compared to the same quarter last year. In addition, VISA INC has also vastly surpassed the industry average cash flow growth rate of 21.28%.
- You can view the full analysis from the report here: V Ratings Report
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