Visa (V:NYE) reported robust results for the second quarter of its fiscal year, exceeding expectations due to rising card usage and a rebound in international travel. Following the announcement, the Visa stock rose about 2% in after-hours trading.
Adjusted earnings per share for the quarter ending March 31 were $2.09, exceeding consensus estimates of $1.99 and increasing 17% from the same period last year. In the meantime, revenue increased 11% year-over-year to $8 billion, exceeding consensus estimates by $200 million, as a result of robust 24% growth in cross-border volumes, especially in Asian markets.
The volume of payments increased by 10% annually, while the total number of processed transactions increased by 12% to 50,1 billion. Visa’s strong fiscal Q2 performance was attributed by CEO Ryan McInerney to the company’s focus on growth levers, such as consumer payments, novel flows, and value-added services.
Visa Stock Forecast:
Visa anticipates net revenue growth in the low double digits for the fiscal third quarter, driven by the ongoing rebound in travel expenditure. Additionally, the company anticipates a moderate increase in adjusted operating expenses over the course of the year.
Visa Stock Forecast-Analyst Ratings:
Following the Q2 earnings report, Mizuho Securities analyst Dan Dolev reaffirmed a Hold rating on the Visa stock with a $240 price target, citing post-pandemic travel recovery and easy year-over-year comparisons as reasons for the robust performance.
The analyst consensus is a Strong Buy based on 14 Buy ratings and 1 Hold rating. The average price target of $267.29 indicates an upside potential of 16.4% from current levels, with shares having gained approximately 11% so far this year.
Visa Inc. operates as a payments technology company worldwide. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. The company serves consumers, merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.