In the CNBC‘s ‘Mad Dash,’ Jim Cramer shared his views on Visa Inc (NYSE:V). Cramer said that Charles W. Scharf, the CEO of Visa Inc (NYSE:V), is a brilliant man and that there is no doubt about it, but he added that the recent quarterly earnings release of the company was not in line with the market expectations.
According to Cramer, even if Visa Inc (NYSE:V) has performed better than last quarter it still has performed below the mark and has highlighted the strengthening of the U.S. dollar as one of the major reasons that impacted its net operating revenues.
Cramer said that whenever the stock has got a hammer (fallen in price), it is time to buy it, but he also expressed his concerns, saying “It’s a very tough quarter to get your arms around, let the stock come in and then pick it up. Because the conference call made me feel less certain than I think, Charlie wanted us to feel.”
Meanwhile, as part of its earnings release for the second quarter 2014, Visa Inc (NYSE:V) reported a 26% raise in net income at $1.6 billion compared to $1.27 billion during the same period last year. The company also posted a 7% increase in revenue to $3.16 billion, compared to $2.96 billion for the same period in 2013, but the growth in revenue was lower than the market estimate of $3.19 billion.
The company also reduced its revenue growth forecast for the year 2014 to a range of 10% to 11% compared to the earlier forecast of 10% to 13% range. Byron Pollitt, the EVP and CFO of Visa Inc (NYSE:V) attributed the above change in forecast to the downward shift in the U.S. debit spending. As a result, following the earnings release the stock fell around 4%.