Visa Inc crushes third-quarter financial estimates

Visa (NYSE: V), a global leader in digital payment systems that facilitates payment transactions between merchants, consumers, government entities, and financial institutions across over 200 territories and countries, recorded adjusted earnings per share in the third quarter of the 2022 financial year that easily beat analyst estimates.

Visa beats analyst estimates 

Visa Inc reported a $1.98 adjusted EPS in the third quarter, easily topping the $1.75 analyst consensus. They recorded a $7.3 billion total revenue in the same quarter, also crushing the $7.09 billion average analyst estimate.

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The company recorded a $2.94 trillion payment volume, but this was a bit lower than the $2.97 trillion analyst consensus. Cross-border payment volume rates went up 40% topping all analyst estimates due to strong travel recovery around the globe.

Visa said it processed payment transactions of about $49.3 billion, which also topped the average analyst consensus of $48.83 billion.

Visa Chief Executive Officer and Chairman, Alfred Kelly said:

Sustained levels of growth in overall payments volume, cross-border volume, and processed transactions demonstrated the resiliency of our business model. Consumers are back on the road, visiting various corners of the world, resulting in cross-border travel volume surpassing 2019 levels for the first time since the pandemic began in early 2020.

Analyst remarks and comments 

Ashwin Shirvaikar, a Citi financial analyst, urged investors to purchase Visa Inc shares amid robust management commentary.

In a note, Ashwin told clients:

We continue to look for a healthy near-term picture though we had already reduced CY23 estimates to incorporate a slowdown. Taken together, our estimates rise modestly. We believe V remains a good stock to own currently.

James Faucette, a Morgan Stanley financial analyst, also talked highly about Visa Inc shares. Mr. Faucette increased the per share price target to about $291 from the previous $284 he estimated to reflect the increased EPS estimates for the 2022/2023 financial year by around 5% and 2%, respectively.

Faucette remains positive on V shares in large part because of the solid return of cross-border travel.