Visa Charges Forward With Another Strong Quarter

By Chris Lange Updated Jan 12, 12:29AM EST · Published Apr 25, 4:30PM EDT

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Visa Inc. (NYSE: V) released its most recent quarterly report after markets closed Wednesday. The company posted $1.11 in earnings per share (EPS) on $5.07 billion in revenue versus consensus estimates that called for $1.02 in EPS on $4.81 billion in revenue. The fiscal second quarter from last year had $0.86 in EPS on $4.48 billion in revenue.

Payments volume for the three months ended December 2017, on which the fiscal second quarter service revenue is recognized, grew 10% from last year on a constant dollar basis. And payments volume for the three months ended March 2018 grew 11% year over year on a constant dollar basis.

Cross-border volume growth was 11% on a constant dollar basis.

Total processed transactions for the quarter were 29.3 billion, a 12% increase from last year.

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Looking ahead to the fiscal full year, the company expects to see net revenue growth in the low double digits on a nominal basis and EPS growth in the “high-20’s”. There are consensus estimates calling for $4.40 in EPS on $20.18 billion in revenue for the 2018 full year.

Alfred F. Kelly, CEO of Visa, commented:

Visa had a terrific second quarter. Revenue growth was better than anticipated and many of our key business drivers accelerated compared to the first quarter, including strong growth in cross-border and payments volume. The fundamentals of our core business remain robust around the world and our team continues to execute against the company’s long-term growth strategy. Based on our first half results, we are raising our revenue and profit outlook for the year.

Shares of Visa closed Wednesday at $121.20, with a consensus analyst price target of $140.15 and a 52-week range of $90.98 to $126.88. Following the announcement the stock was up about 2% at $123.50 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.