Visa (V) stock is higher Friday after the payments company beat top- and bottom-line expectations for its fiscal 2025 first quarter and raised its full-year outlook.
In the three months ending December 31, Visa’s revenue increased 10% year over year to $9.5 billion, boosted by a 9% increase in payment volume, a 16% increase in cross-border volume and a 11% increase in processed transactions. Earnings per share (EPS) rose 14% from the year-ago period to $2.75.
"Visa's strong first-quarter results reflected healthy spending during the holiday season and improving trends in payments volume, cross-border volume, and processed transactions growth," Visa CEO Ryan McInerney said in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The executive added that Visa remains "focused on serving our clients and innovating across our three growth levers – consumer payments, new flows and value-added services."
The payments processing giant appears to be operating on a business-as-usual basis amid an ongoing September 2024 antitrust lawsuit filed by the Department of Justice (DOJ) accusing it of "exclusionary and anticompetitive conduct."
During Visa's earnings conference call in October, McInerney said "the lawsuit is meritless and shows a clear lack of understanding of the payment ecosystem in the United States."
The results topped analysts' expectations. Wall Street was anticipating revenue of $9.3 billion and earnings of $2.66 per share, according to CNBC.
In its earnings presentation, Visa raised its full-year outlook. The company now anticipates low double-digit revenue growth and low-teens earnings growth. It had previously guided to high single-digit to low double-digit revenue growth and the high end of low double-digit earnings growth.
For the second quarter, Visa said it anticipates high single-digit to low double-digit revenue growth and high single-digit earnings growth.
Is Visa stock a buy, sell or hold?
Visa quickly recovered from a short sell-off triggered by the DOJ filing in September and has performed almost exactly in line with the S&P 500 over the trailing 12 months, generating a total return of 24.73% vs 24.97% for the index. And Wall Street remains bullish on the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst price target for V stock is $363.36, representing implied upside of more than 4% from current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Oppenheimer has an Outperform rating (equivalent to a Buy) with a $390 price target on the blue chip stock.
"Visa remains well-positioned to gain global market share from the multi-year runway to convert paper-based payments to card, enabling high-single payment volume growth over the next 3 years, at least," said Oppenheimer analyst Rayna Kumar in a note yesterday.
The analyst added that "the market is already pricing in slower growth based on our macro scenario analysis, and higher potential for regulatory risk."
Related Content
-
Apple Stock Climbs to the Top of the Dow After EarningsApple stock is higher Friday after the tech giant beat expectations for its fiscal 2025 first quarter. Here's what you need to know.
-
Why a 5-year CD is Your Best Bet After the Fed MeetingWith no rate cut at the Fed meeting in January, you still have time to lock in historically high interest rates with a 5-year CD.
-
Apple Stock Climbs to the Top of the Dow After Earnings
Apple stock is higher Friday after the tech giant beat expectations for its fiscal 2025 first quarter. Here's what you need to know.
-
If Not Long-Term Care Insurance, Then What?If you don't buy long-term care insurance, how can you plan to cover your long-term care needs once they (most likely inevitably) arise?
-
What to Consider Before You Invest in AlternativesA new economic paradigm points to the advantages of adding alternative investments to your portfolio for diversification and possibly higher returns.
-
Three Key Questions for Small-Business Owners in 2025Now is a great time to consider how best to position your small business for another successful year.
-
How Does Car Insurance Work for Ride-Sharing Drivers?Can you use your personal auto insurance? Does it cover everything or only certain things? Here's how to find out.
-
Stock Market Today: Investors Adjust to Earnings and GuidanceThe stock market struggles in a good way when it's measuring what's happening on the ground.
-
UPS Stock Plunges as Amazon Plans 50% Volume CutUPS stock is lower after announcing that Amazon, its largest customer, will slash its volume by more than 50% by late 2026. Here's what you need to know.
-
Why Microsoft Stock Is Sinking After EarningsMicrosoft is the worst Dow Jones stock Thursday as the tech giant's soft outlook offsets an earnings beat. Here's what you need to know.
