Credit card giant Visa (V) has reported Fiscal fourth-quarter financial results that slightly beat the consensus expectations on Wall Street.
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The San Francisco-based company announced earnings per share (EPS) of $2.98, which was a little better than the consensus estimate that called for $2.97 in profit. Revenue in the quarter totaled $10.70 billion, which was a little ahead of the $10.61 billion forecast among analysts.
Management attributed the results to strong consumer spending that has remained resilient throughout this year and helped boost global payment transactions and credit card volumes worldwide. V stock was up 1% in after hours trading on news of its Q3 financial results.
Visa’s net income. Source: Main Street Data
Outlook and Dividend
For the full Fiscal year, Visa posted revenue of $40 billion, up 11% from a year earlier. Management said they continue to adopt new technologies to broaden Visa’s payments ecosystem. These include artificial intelligence-driven commerce, tokenization, and stablecoins.
Looking ahead, Visa said that it now expect operating expenses in the current quarter to be up low double digits, with low teens percentage earnings growth. The company also said that its board of directors approved a quarterly dividend to $0.67 per share, up 14% from $0.59 a share previously. The new dividend will be paid shareholders of record as of Nov. 12 this year.
Is V Stock a Buy?
The stock of Visa has a consensus Strong Buy rating among 25 Wall Street analysts. That rating is based on 21 Buy and four Hold recommendations issued in the last three months. The average V price target of $399.05 implies 14.82% upside from current levels. These ratings might change after the company’s financial results.
