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Source: Visible Alpha
Key Takeaways
- Solid growth in transactions for Visa Inc. drove broad-based gains in the credit card company’s fiscal first quarter, analysts estimate.
- Revenue likely increased 9% to 12% in each of Visa’s three primary business segments, its earnings report Thursday is anticipated to show.
- Visa likely processed $3.3 trillion worth of payments during the quarter.
Visa Inc. ( V ) on Thursday is expected to report a 13% quarterly earnings increase, fueled by broad-based growth in transactions, payment volume, and data processing revenue.
The credit card and payments giant likely will report fiscal first-quarter profit of $4.7 billion, or $2.31 per share, according to the consensus estimate of analysts surveyed by Visible Alpha, up from $4.2 billion, or $1.99 per share, in the same period a year ago. The firm’s operating revenue is projected to rise 8% to $8.5 billion.
| Visa Inc. Quarterly Earnings Forecast | |||
|---|---|---|---|
| Analysts’ Estimates for Fiscal Q1 2024 | Q4 2023 | Q1 2023 | |
| Revenue | $8.5 billion | $8.6 billion | $7.9 billion |
| Diluted EPS | $2.31 | $2.27 | $1.99 |
| Net Income | $4.7 billion | $4.7 billion | $4.2 billion |
Key Metrics
The quarter’s results are estimated to reflect expected gains of 12%, 11%, and 9%, respectively, in the company’s data processing, service and international transaction revenue , according to Visible Alpha’s estimates.
The revenue increases stem from anticipated growth of 10% in payment volume to $3.3 trillion, as the company processed an estimated 57.6 billion transactions, up 5.1 billion from the same period a year ago.
Business Spotlight
Visa has been riding high on the past year’s surprisingly resilient consumer spending and the holiday season proved to be no different.
Last week, the Census Bureau reported that December’s retail sales were up 0.6% from November and 5.6% higher than the prior year. Credit card debt also continues to tick up for Americans , however, that growth has slowed.
Shares of Visa have gained about 20% in the past year and 13% in the past three months.