Visa (NYSE:V) posted better-than-expected results for the fiscal second quarter (ended March 31), thanks to rising card usage globally and a rebound in cross-border travel. Following the release, shares of the company gained about 2% in yesterday’s extended trade.
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Adjusted earnings of $2.09 per share beat consensus estimates of $1.99 per share and increased 17% from the prior-year period. Meanwhile, revenues jumped 11% year-over-year to $8 billion and exceeded consensus estimates by $200 million. The top line benefited from solid 24% growth in total cross-border volumes, particularly in Asian markets.
In other key metrics, payments volume rose 10% year-over-year, and total processed transactions grew 12% to 50.1 billion.
Commenting on Visa’s fiscal Q2 performance, CEO Ryan McInerney said, “Visa’s strong fiscal second quarter performance reflects a continued focus on our growth levers — consumer payments, new flows, and value-added services.”
Moving on, the company anticipates sequential net revenue growth in the low-double digits for the fiscal third quarter. According to Visa, the rebound in travel spending will continue, which will probably support topline growth. A moderate increase in adjusted operating expenses is also anticipated throughout the year.
What is the Forecast for Visa Stock?
Following the Q2 earnings outcome, Mizuho Securities analyst Dan Dolev reaffirmed a Hold rating on the stock with a price target of $240. The analyst believes that the reported quarter benefited from post-pandemic travel recovery and easy comparisons to last year.
The consensus among analysts is a Strong Buy based on 14 Buys and one Hold. The average price target of $267.29 implies upside potential of 16.4% from current levels. Shares have gained about 11% year-to-date.
