Visa (NYSE:V) announced better-than-expected results for the first quarter of Fiscal Year 2024 on higher payment volume and processed transactions. However, the company’s Q2 outlook suggests a moderation in revenue growth compared to the previous year’s performance. As a result, the stock fell about 3% in yesterday’s extended trading session.
Visa is a global payments technology company that facilitates electronic funds transfers and operates one of the world’s largest payment processing networks.
Q1 Earnings Snapshot
Visa’s adjusted earnings of $2.41 per share easily outpaced the Street’s estimates of $2.34 per share and increased 11% from the prior-year quarter. Similarly, net revenues grew about 9% year-over-year to $8.63 billion and exceeded analysts’ estimates of $8.55 billion.
The company witnessed an 8% growth in payment volume and a 9% jump in processed transactions. Also, the total cross-border volume grew 16% year-over-year on robust consumer spending trends.
Looking ahead, Visa expects fiscal second-quarter net revenue growth of “upper-mid to high-single digits” compared with an 11% jump in the year-ago quarter. Furthermore, adjusted earnings per share are expected to grow in the “high teens” digit.
What is the Future of Visa Stock?
Following the Q1 print, Sanjay Sakhrani analyst KBW reiterated a Buy rating on the stock with a price target of $305, implying 11.9% upside potential.
On TipRanks, Visa stock commands a Strong Buy consensus rating. This is based on 15 Buy versus two Hold ratings received during the past three months. The average Visa price target of $293.75 implies a 7.8% upside potential from current levels. Shares of the company have gained 22.3% in the past year.
