Visa beats Q1 revenue, profit estimates

Overview

• Digital payments giant's fiscal Q1 revenue rose 15%, beating analysts' expectations

• Adjusted EPS for fiscal Q1 beat consensus, rising 15% yr/yr

• Company repurchased approximately 11 mln shares for $3.8 bln

Outlook

• Visa did not provide specific financial guidance for future quarters

Result Drivers

• PAYMENTS VOLUME - Growth in payments volume contributed to revenue increase

• CROSS-BORDER TRANSACTIONS - Cross-border volume excluding intra-Europe rose 11%, aiding revenue growth

• CONSUMER SPENDING - Resilient consumer spending and a strong holiday season supported earnings growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 37 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Visa Inc is $404.00, about 23.6% above its January 28 closing price of $326.98

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 27 three months ago

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