Dow Jones credit card giant Visa reported better-than-expected fiscal Q4 earnings late Tuesday, citing resilient consumers. Visa stock rose slightly Wednesday after sliding premarket. Shares initially climbed after hours Tuesday on results with a dividend hike and buyback also helping.
Visa reported 21% adjusted earnings growth to $2.33 per share on 10.6% revenue growth to $8.6 billion.
Analysts polled by FactSet expected 16.6% earnings growth to $2.25 per share adjusted on 9.9% revenue growth to $8.56 billion.
Payments volume increased 9% for the quarter with a 16% jump in cross-border volumes on a constant basis. Processed transactions rose 10%.
The Dow Jones payments processor reported 12% service revenue growth to $3.88 billion. Visa's data processing revenues increased 13% to $4.26 billion. International transaction revenues climbed 10% to $3.17 billion.
Visa CEO Ryan McInerney in the results noted resilient consumer spending and an ongoing recovery in cross-border travel compared to 2019 levels.
For the 2024 fiscal year, Visa guided high single-digit to low double-digit net revenue growth. Visa expects adjusted earnings to decline about 5.5% due to acquisition-related costs. The Dow Jones company expects GAAP earnings growth in the high teens.
Visa raised its quarterly dividend nearly 16% to 62 cents a share. It also announced a $25 billion buyback.
Visa Stock
Visa stock rose about 1% Wednesday to retake its 10-day and 21-day moving averages. Shares climbed 1.35% to 234.65 in Tuesday's regular session, trading between the 50-day and 200-day lines
V stock is trading in a flat base with a 250.06 buy point.
Shares are up nearly 14% this year through Wednesday's close and approaching an all-time high of 252.67 from July 2021.
Mastercard reversed slightly lower early Wednesday after climbing Tuesday evening. MA stock reports earnings on Thursday.
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