Visa retreated Wednesday after the Dow Jones payments giant reported Q3 results late Tuesday. A number of analysts cut their price targets on Visa stock after results.
Visa reported a 12% increase in earnings to $2.42 per share adjusted, matching FactSet estimates. Revenue increased 10% to $8.9 billion, but fell just short of expectations of $8.918 billion.
Payments volume rose 7% for the quarter while cross-border volume increased 14%. Processed transactions increased 10% for the quarter.
Visa guided expectations to low double-digit revenue growth for the fourth quarter with high single-digit operating expense growth. The payments giant sees its earnings per share increasing at the upper end of low double-digit growth. FactSet expects Q4 earnings will increase about 10% to $2.57 per share adjusted on 10.2% revenue growth, to $9.48 billion.
Visa expects a full-year earnings increase in the low teens on low double-digit revenue growth. FactSet forecasts 2024 the Dow Jones company's earnings increase 13.1% to $9.92 per share adjusted on 9.6% revenue growth to $35.81 billion.
Jefferies on Wednesday cut its price target on Visa stock to 300 from 325, The Fly reported. The firm called the report "a rare top-line miss," which was joined with slowing July trends. Jefferies doesn't see a near-term catalyst for a positive narrative change as cross-border growth slows. The firm maintained an overweight rating on the shares.
Morgan Stanley also lowered its price target on Visa after results. But the firm said it was "reassured" as Visa management highlighted stable trends from Q3 compared to Q2. Even with slightly lower growth forecasts, Morgan Stanley expects Visa to post 12.4% EPS growth for 2025. Morgan Stanley lowered its price target on Visa stock to $322 from $326 and maintained an overweight rating on the shares.
Piper Sandler, TD Cowen, Citi and JPMorgan also cut their price targets modestly on Visa stock after results. None of the firms downgraded the shares.
Visa Stock
Visa stock retreated 4% Wednesday, to undercut its July 10 low and drop to its lowest level since January. Shares closed below the 200-day moving average on Tuesday amid a downtrend stretching back to March.
Visa stock slid 2.4% so far this year.
Dow Jones rival American Express weakened 2.4% Wednesday. AXP stock is trading below a flat base buy zone. Shares initially broke out above the 244.41 buy point on July 15.
Still, AXP stock rallied 28.6% in 2024.
Mastercard eased 2% Wednesday. MA stock rose 1.5% year to date.
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