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Visa Inc. (V), based in San Francisco, is a global payment technology company with a market cap of $507.7 billion. Operating in over 200 countries, it facilitates transactions for consumers, merchants, and institutions. Visa is set to report its fiscal Q4 2024 earnings on Tuesday, Oct. 22.
Ahead of the event, analysts expect V to report a profit of $2.58 per share on a diluted basis, up 10.7% from $2.33 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Despite macroeconomic headwinds, its EPS of $2.42 exceeded the consensus estimate marginally in the recent quarter.
For fiscal 2024, analysts expect V to report EPS of $9.92, up 13.1% from $8.77 in fiscal 2023. For fiscal 2025, its EPS is likely to rise 11.7% annually to $11.08.
V stock has significantly underperformed the S&P 500’s ($SPX) 19.7% gains on a YTD basis, with shares up 6.4% during this period. V has also struggled to keep up with the Financial Select Sector SPDR Fund’s (XLF) 20% gains over the same time frame.
A lawsuit from the U.S. Department of Justice has recently hampered Visa’s price performance. The suit accuses Visa of monopolizing the debit card market by penalizing merchants for choosing other payment services and discouraging competition, raising concerns about potential regulatory consequences. As a result, the stock dropped more than 5% on Sept. 24.
However, Visa shares gained over 1% on Sept. 3 after BNP Paribas upgraded the stock to “Outperform” from “Neutral,” setting a price target of $325.
Analysts’ consensus opinion on V stock is highly bullish, with a “Strong Buy” rating overall. Out of 37 analysts covering the stock, 28 advise a “Strong Buy” rating, three have a “Moderate Buy” rating, and six recommend a “Hold.”
The average analyst price target for V is $307.38, indicating an 11% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
