Visa’s Upcoming Earnings Report Anticipated to Show Growth
The forthcoming earnings report from Visa (V) is projected to disclose quarterly earnings of $2.96 per share, reflecting a 9.2% rise compared to the same period last year. Analysts predict revenues to reach $10.61 billion, marking a 10.3% increase year-over-year. In the last 30 days, the consensus estimate for earnings per share (EPS) for the quarter has been adjusted upward by 0.1%, indicating that analysts have revised their initial forecasts during this period. Revising earnings estimates before a company’s earnings announcement is vital, as it serves as a key indicator for anticipating investor behavior towards the stock. Research has consistently shown a strong link between modifications in earnings estimates and the short-term stock price movements.
Analysts’ Projections for Key Visa Metrics
While investors typically look at consensus earnings and revenue figures to understand a company’s performance over the quarter, analyzing specific projected metrics can provide deeper insights. With that context, let’s explore the average forecasts for several critical Visa metrics that analysts on Wall Street commonly monitor. The consensus forecast for ‘Revenues- Service revenue’ stands at $4.63 billion, representing a 10.3% increase from the previous year’s quarter. Analysts estimate that ‘Revenues- Data processing revenue’ will likely hit $5.23 billion, indicating a year-over-year growth of 13.5%. Furthermore, projections for ‘Revenues- Other revenue’ suggest it will reach $1.18 billion, which translates to a significant increase of 22.3% compared to last year.
Further Insights into Revenue Projections
Analysts also anticipate that ‘Revenues- International transaction revenue’ will amount to $3.86 billion, reflecting an 11.3% growth from the previous year. Regarding ‘End of Period Connections – Total transactions,’ the estimate is set at 67.68 billion, a notable rise from the 61.51 billion reported in the same quarter last year. The forecast for ‘Payments volume – Total’ is expected to reach $3,703.36 billion, compared to the $3,409.00 billion figure from a year ago.
Geographical Breakdown of Payments Volume
According to analysts, ‘Payments volume – CEMEA’ is projected to come in at $233.17 billion, a rise from last year’s $202.00 billion. The consensus for ‘Payments volume – U.S.A’ is estimated at $1,775.98 billion, compared to last year’s $1,650.00 billion. In Asia-Pacific, analysts expect ‘Payments volume’ to reach $516.23 billion, slightly up from $507.00 billion the previous year. The estimate for ‘Payments volume – Canada’ is $109.76 billion, which shows an increase from last year’s $105.00 billion. The collective analysis points to an estimated ‘Total volume’ of $4,286.02 billion, contrasting with the year-ago figure of $4,035.00 billion. Finally, the average analyst prediction for ‘Payments volume – Europe’ is set at $800.41 billion, up from last year’s $715.00 billion.
Visa’s Stock Performance and Market Outlook
In terms of stock performance, Visa shares have experienced a 2% increase over the past month, outpacing the Zacks S&P 500 composite, which saw a modest rise of 0.2%. Currently holding a Zacks Rank of #3 (Hold), Visa is anticipated to closely track the market’s overall performance in the near future.
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