The sanctions may trim "several pennies" per share from Visa's fiscal 2014 earnings, said CFO Byron Pollitt said yesterday after the company reported quarterly results, Bloomberg reports.
The U.S. imposed sanctions on more than two dozen individuals and St. Petersburg-based OAO Bank Rossiya, prompting Visa and MasterCard Inc. (MA) to stop processing payments for some banks. Russian President Putin responded to the sanctions by recommending that his country create its own payments system and change its laws. He said the two companies will lose market share, Bloomberg noted.
TheStreet Ratings team rates VISA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate VISA INC (V) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."