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Valued at a market cap of $586.6 billion, Visa Inc. (V) is a global leader in digital payments. Headquartered in San Francisco, California, the company operates one of the world's largest payment networks, facilitating electronic funds transfers through credit, debit, prepaid cards, and digital solutions. Visa's innovative technologies enable secure and efficient transactions, connecting consumers, businesses, and governments across over 200 countries and territories. The company is all set to release its Q1 earnings on Thursday, Jan. 23.
Ahead of the event, analysts expect Visa to report a profit of $2.66 per share, up 10.4% from $2.41 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in each of the last four quarters.
Its adjusted earnings of $2.71 per share for the last quarter surpassed the consensus estimate by 5%. Visa's Q4 results were propelled by strong payment volume, transaction growth, and cross-border activity.
For fiscal 2025, analysts expect Visa to report EPS of $11.22, up 11.6% from $10.05 in fiscal 2024.
Shares of Visa have risen 22.1% over the past 52 weeks, trailing the S&P 500 Index's ($SPX) 26.3% increase and the iShares U.S. Financial Services ETF's (IYG) impressive 32.6% gain during the same timeframe.
Visa's shares rose 2.9% in the subsequent trading session following its Q4 earnings report on Oct. 29, 2024. The company posted an adjusted EPS of $2.71, surpassing Wall Street's estimate of $2.58 and marking a 16% year-over-year increase. Revenue grew 12% to $9.6 billion, exceeding expectations of $9.5 billion.
For fiscal Q1 2025, Visa expects high single-digit net revenue growth and high single-digit to low double-digit operating expense growth, with diluted EPS growth in the low double digits.
The consensus opinion on Visa stock is bullish, with an overall “Strong Buy” rating. Of the 36 analysts covering the stock, 27 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” and six indicate a “Hold.”
V's average analyst price target is $335.51, indicating a potential upside of 6.5% from the current levels.
