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Visa Inc. (V), headquartered in San Francisco, California, is a payment technology company worldwide. Valued at $480.19 billion by market cap, the company facilitates transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. The digital payments giant is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Tuesday, Jul. 23.
Ahead of the event, analysts expect V to report a profit of $2.41 per share on a diluted basis, up 11.6% from $2.16 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, V completed the acquisition of Pismo, a cloud-native issuer processing and core banking platform. It also repurchased 9.7 million shares of class A common stock at an average cost of $280.80 per share for $2.7 billion.
For fiscal 2024, analysts expect V to report EPS of $9.94, up 13.3% from $8.77 in fiscal 2023.
V stock has significantly underperformed the S&P 500’s ($SPX) 17.7% gains on a YTD basis, with shares up 1.6% during this period. Similarly, it has underperformed the S&P 500 Financials Sector SPDR’s (XLF) 12.5% gains over the same time frame.
On Jul. 10, V shares closed down nearly 1% after Bank of America Global Research downgraded the stock from Buy to Neutral.
On Jun. 27, V shares closed down more than 2% after a U.S. District Judge rejected a $30 billion antitrust settlement in which Visa and Mastercard agreed to limit fees they charge merchants that accept their credit and debit cards. The decision could force the credit card processors to negotiate a more favorable settlement with the merchants or go to trial.
On Apr. 23, V reported its Q2 results. Its adjusted EPS was $2.51, beating the consensus estimates of $2.43. The company’s revenue stood at $8.78 billion, surpassing the Wall Street expectations of $8.60 billion. V’s overall payments volume and cross-border volume rose 8% and 16%, respectively. It reiterated its previous guidance of low-double-digit revenue growth for 2024. V shares closed up marginally on the day the results were released but have been on a downtrend since then.
Analysts’ consensus opinion on V stock is bullish, with a “Strong Buy” rating overall. Out of 31 analysts covering the stock, 22 advise a “Strong Buy” rating, four have a “Moderate Buy” rating, and five recommend a “Hold.” The average analyst price target for V is $307.68, indicating a 17.2% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
