Visa stock swung higher early Wednesday, trading with Boeing atop the Dow Jones Industrial Average after delivering quarterly results late Tuesday and early Wednesday, respectively. A number of analysts raised their price targets on Visa after the report.
Visa reported a 20% increase in adjusted earnings to $2.51 per share while net revenue climbed 10% to $8.78 billion.
FactSet analysts expected earnings to increase to $2.44 per share adjusted on about 8% revenue growth to $8.62 billion.
The company reported that payments volume rose 8% for the quarter, processed transactions increased 11%, and cross-border payments volume grew 16%, which CEO Ryan McInerney attributed to "stable" consumer spending.
Visa guided low double-digit net revenue growth for the third quarter and operating expense growth in the low teens. Visa forecasts Q3 earnings growth at the "high end" of a low double-digit gain. FactSet predicts third-quarter earnings will rise 12% to $2.42 per share adjusted on 9.9% net revenue growth.
The Dow Jones payments giant maintained its full-year outlook. The company expects net revenue growth and operating expense growth in the low-double digits, with earnings per share growth in the low teens.
Wall Street forecasts 2024 adjusted earnings will jump 13% to $9.92 per share on 9.9% revenue growth to $35.87 billion.
Hiked Targets
A number of research firms hoisted their price targets on Visa stock early Wednesday, based on expected growth acceleration in the second half of the year.
RBC Capital noted Visa's strong performance despite plenty of moving parts throughout the quarter including bad weather, the leap year and the timing of Easter. RBC Capital said the quarter illustrates the durability of Visa's business model while the 2024 guidance implies acceleration in back half of the year, according to reporting by The Fly. Although cross-border volumes for the Asia-Pacific region were slightly weaker than expected, e-commerce volumes topped forecasts and offset softness in China, RBC said. The firm raised its price target to $315 from $309 and maintained an outperform rating on the shares.
UBS predicts 11% to 12% organic net revenue growth for the year on a currency-neutral basis, based on Q1 and Q2 performance. The firm lifted its price target on V stock to $325 from $315 and kept a buy rating on shares.
Wedbush on Wednesday also raised its price target on Visa to $300 from $280. The firm maintained an outperform rating on the stock.
Visa Stock
Visa stock surged 2.5% early Wednesday, eyeing a move back above its 21-day exponential moving average. Shares could rebound above their 50-day line if the move holds.
Rival Mastercard ticked higher in premarket trading with its quarterly report due next week.
American Express inched lower Wednesday morning. AXP stock, also a Dow Jones issue, is trading at record highs after reporting a 39% earnings increase last week.
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