Visa (V.US) Q3 Earnings and Profit Surpass Expectations, Maintain Full-Year Guidance Unchanged
We learned from sources that on Tuesday, Visa (V.US), the largest payment network company in the US, announced its third-quarter earnings. The Q3 revenue reached a record-breaking $10.2 billion, up 14% year-over-year; adjusted EPS was $2.98, up 23%, surpassing analysts' expectations. Net profit growth was 19%, reaching $58 billion.
Looking ahead to the future, the company maintains its full-year earnings guidance unchanged. Visa maintained its full-year guidance, expecting EPS to grow by 11%-13% (Low-teens), and net revenue growth to remain in the low double-digit percentage range.
After the earnings announcement, as of the time of writing, Visa's stock price fell 2.3%, declining to $343.32 per share. Dan Dolev, an analyst at JPMorgan Securities, stated in a report to clients that Visa was unable to raise its full-year guidance, which may be the reason for the company's stock decline.
Julia Ostian from Seeking Alpha said, "Visa just had another strong quarter, with revenue and profit both showing significant growth. Cross-border transaction volumes are up, consumers continue to spend, and the outlook is bright. However, even with this performance, the company's stock price still fell because 'great' isn't always good enough unless you can surprise everyone with a big boost in guidance, especially for companies like Visa that have high multiples.".
However, Chris Suh, Visa's Chief Financial Officer, stated during his conversation with analysts that the company expects revenue and EPS growth to exceed previous expectations. Ryan McInerney, Visa's CEO, also stated in a statement, "Consumer spending remains strong, with non-essential goods and services maintaining their growth trend. The healthy business trends continued into the early weeks of this quarter.".
Visa's total payment volume for Q3 was $362 billion, exceeding expectations of $359 billion, but down from the previous quarter's $394 billion. In terms of constant dollars, payment amounts grew by 8% year-over-year, cross-border payments grew by 12%, and transaction volumes increased by 10%. Compared to the second quarter, payment amounts grew by 8%, cross-border payments grew by 13%, and transaction volumes grew by 9%.
Ostian added, "For those who follow valuation, don't forget that Visa is a financial technology company. I often see investors chasing after the hottest companies in this field. While you need to judge whether the entire industry is overvalued or if Visa deserves its multiples, Visa quietly controls the entire payment system without flaunting it with AI buzzwords, which doesn't mean it should be dismissed.".