Visa Reports Better Than Expected Q2 Earnings

Visa (NYSE:V) announced its fiscal Q2/24 earnings and revenue that exceeded analysts' expectations. Visa reported earnings per share (EPS) of $2.51, surpassing the estimate of $2.44, and revenue of $8.78 billion, which also exceeded the forecast of $8.62 billion.

During the quarter, payment volumes rose by 8%, and cross-border volumes, excluding intra-Europe transactions, increased by 16%. Looking ahead, Visa projects revenue growth in the low double digits for the fiscal third quarter and maintains similar expectations for the entire year. The company also anticipates third-quarter EPS to be at the high end of the low double-digit range, with full-year EPS growth expected in the low teens.

Analysts at Goldman Sachs noted Visa's robust performance, highlighting the company's resilience and its capability to sustain EPS growth in the teens at scale. They pointed out that Visa's stock is trading at a level consistent with its historical average multiple and at a discount compared to its average historical multiple versus an equal weight S&P. The analysts believe that the fiscal second quarter results should positively influence the stock, especially since it has underperformed the market year-to-date.