- Visa‘s Adjusted EPS for Q3 2024 was $2.42, slightly below the estimate of $2.43 but higher than last year’s $2.16.
- Q3 2024 EPS stood at $2.40, up from $2 last year.
- Payment volume reached $3.33 trillion, a 5% increase from last year but below the estimated $3.42 trillion.
- Payments volume at constant currency grew by 7%, just under the estimated 8.36%.
- Cross-border volumes at constant currency matched the estimated 14% increase.
- Total processed transactions hit $59.3 billion, nearly meeting the $59.45 billion estimate, with a 9.8% year-over-year increase.
- Total processed transactions grew by 10% overall.
- Net revenue was $8.90 billion, up 9.9% year-over-year but slightly below the estimate of $8.96 billion.
- Client incentives revenue was -$3.53 billion, an 11% reduction compared to last year, near the estimated -$3.51 billion.
- Total operating expenses were $2.96 billion, a 4.4% year-over-year decrease and close to the estimated $2.95 billion.
- Visa forecasts low double-digit net revenue growth for fiscal Q4 2024.
- High single-digit operating expense growth is expected for fiscal Q4 2024.
- Visa expects its Diluted Class A Common Stock EPS for fiscal Q4 2024 to grow at the high end of the low double-digit range.
- For fiscal 2024, Visa forecasts low double-digit net revenue growth.
- Operating expense growth for fiscal 2024 is expected to be in the high single-digit to low double-digit range.
- The company forecasts its Diluted Class A Common Stock EPS for fiscal 2024 to grow in the low-teens.
- Analyst consensus: 39 buys, 9 holds, 0 sells.
Visa on Smartkarma
Analyst coverage of Visa on Smartkarma reveals a mixed sentiment among independent analysts. Victor Galliano‘s research, “Payment Companies – Updated Sector Overview and Potential IPOs,” highlights a challenging quarter for long investors in payment companies. Despite this, Visa is recommended as a core holding alongside PagSeguro and Shift4, while PayPal is replaced by Nexi as a buy. Affirm retains a sell rating in this analysis.
On the bullish side, Baptista Research‘s insights shed light on Visa‘s strong financial performance. Their report, “Visa Inc.: How Is It Capturing Market Share From Domestic Card Networks? – Major Drivers,” emphasizes Visa‘s solid ground with notable revenue growth in Fiscal Second Quarter 2024. With net revenue reaching $8.8 billion and significant increases in earnings per share, Visa appears well-positioned for continued growth and market share expansion.
A look at Visa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Visa Inc., a global leader in retail electronic payments and financial services, is positioned for long-term growth based on the Smartkarma Smart Scores analysis. With a strong focus on growth and resilience scoring high at 4 each, Visa demonstrates robust potential for expansion and the ability to withstand market challenges. This indicates a positive outlook for the company’s future performance.
While the value and dividend scores are moderate at 2, Visa‘s momentum score of 3 suggests a steady pace of development in the market. Overall, the Smart Scores paint a favorable picture for Visa‘s long-term prospects, highlighting its growth potential, resilience, and momentum in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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