- Visa‘s adjusted EPS for Q3 is $2.51, surpassing the previous year’s $2.16 and the estimated $2.43.
- Reported EPS is $2.29, an increase from $2 last year, but below the estimate of $2.43.
- Payments volume grew by 7% at constant currency, slightly below the estimated growth of 8.36%.
- Cross-border volumes increased by 14% at constant currency, matching estimates.
- Total Visa processed transactions reached $59.3 billion, an increase of 9.8% year-over-year, just shy of the estimated $59.45 billion.
- Total Visa processed transactions grew by 10% overall.
- Net revenue for Visa is $8.90 billion, reflecting a 9.9% year-over-year growth, slightly missing the estimate of $8.96 billion.
- Client incentives revenue is -$3.53 billion, a reduction of 11% year-over-year, compared to the estimated -$3.51 billion.
- Total operating expenses stand at $2.96 billion, a decrease of 4.4% year-over-year, in line with the estimate of $2.95 billion.
- Analysts’ recommendations: 39 buys, 9 holds, and 0 sells for Visa stock.
Visa on Smartkarma
Analysts on Smartkarma have been closely covering Visa, one of the leading global payments technology companies. Victor Galliano‘s recent report, “Payment Companies – Updated Sector Overview and Potential IPOs,” highlighted a mixed performance in 2Q24 for payment companies, making it challenging for long investors. Despite this, Visa was recommended as a core holding, alongside PagSeguro and Shift4. The report also mentioned Nexi as a buy recommendation, replacing PayPal, and maintained a sell rating on Affirm. This analysis provided valuable insights into the changing dynamics of the payment sector.
Furthermore, Baptista Research‘s reports on Visa focused on the company’s strong financial performance and market share growth strategies. In their analysis, “Visa Inc.: How Is It Capturing Market Share From Domestic Card Networks? – Major Drivers,” they highlighted Visa‘s solid financial standing and substantial revenue growth in the Fiscal Second Quarter of 2024. Another report by Baptista Research, “Visa Inc.: Strong Cross-Border Business Performance To Set Off US Slowdown! – Major Drivers,” emphasized Visa‘s positive start to fiscal year 2024, showcasing growth in payments volume and a commitment to excellent customer service and innovation. These insights underscore Visa‘s position as a key player in the payment industry.
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. is positioned for long-term growth according to Smartkarma’s Smart Scores. With a strong emphasis on growth and resilience, scoring a 4 in both categories, Visa demonstrates its potential for sustained performance. The company’s focus on innovation and adapting to market changes is reflected in its Momentum score of 3, suggesting a steady trajectory. While Value and Dividend scores are at 2, indicating moderate performance in these areas, the overall outlook remains positive for Visa.
As a leading player in retail electronic payments and global financial services, Visa Inc. is well-equipped to navigate the evolving landscape of digital transactions. Its ability to facilitate seamless value transfers among various stakeholders positions it as a key player in the financial ecosystem. Investors may find Visa‘s growth and resilience scores particularly encouraging, pointing towards a robust future outlook for the company in the long run.
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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