Visa (V.US) Q3 revenue and profit exceeded expectations and maintained the full-year results guidance unchanged

The Zhitong Finance App learned that on Tuesday, Visa (V.US), the largest payment network company in the US, announced results for the third fiscal quarter. Q3 revenue reached a record $10.2 billion, up 14% year over year; adjusted earnings per share were $2.98, up 23% year over year; all surpassed analysts' expectations. Quarterly adjusted net profit increased 19% to $5.8 billion.

Looking ahead, the company remains unchanged in its profit forecast guidance for this year. Visa maintained its performance guidelines for the current fiscal year. Earnings per share are expected to grow by 11%-13% (Low-Teens), and the net revenue growth rate will remain in the low double-digit percentage range.

Following the announcement of the results, Visa shares fell 2.3% after the market to $343.32 as of press release. Dan Dolev, an analyst at Mizuho Securities, said in a report to clients that Visa's failure to raise its full-year performance expectations may be the reason for the decline in the company's stock.

Seeking Alpha analyst Julia Ostian said, “Visa has just had another strong quarter, with significant growth in revenue and profit, increased cross-border transactions, and continued consumer spending, so the future looks bright. But even so, the company's stock price is still falling because nowadays, 'excellent' is often not good enough, unless you can surprise everyone by drastically raising expectations, especially for companies with higher valuation multiples, such as Visa.”

However, Visa CFO Chris Suh said in a conversation with analysts that the company expects revenue and earnings per share growth to be better than previously anticipated. Visa CEO Ryan McInerney also stated in a statement: “Consumer spending remains strong, and both non-essential and non-essential consumption in the US have continued to grow. The healthy business-driven trend continued during the first few weeks of the quarter.”

Visa's total payments for the third fiscal quarter were $3.62 trillion, exceeding expectations of $3.59 trillion, but down from $3.94 trillion in the second quarter. In constant US dollars, the amount of payments increased by 8% compared to the same period last year, the amount of cross-border payments increased by 12%, and the number of transactions processed increased by 10%. Compared with the data for the second quarter, the amount of payments increased by 8%, the amount of cross-border payments increased by 13%, and the number of transactions processed increased by 9%.

Ostian added: “For those concerned about valuation, don't forget that Visa is a fintech company. I often see investors chasing after the hottest companies in the space. Although you have to judge whether the entire industry is overvalued, or if Visa actually deserves this valuation multiple, the fact that Visa silently controls the entire payment system and doesn't use exaggerated AI terms from me doesn't mean it should be written off in one fell swoop.”