Earnings Outlook For Visa

Visa V is gearing up to announce its quarterly earnings on Tuesday, 2025-04-29. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Visa will report an earnings per share (EPS) of $2.68.

The market awaits Visa's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.09, leading to a 0.36% drop in the share price on the subsequent day.

Here's a look at Visa's past performance and the resulting price change:

Market Performance of Visa's Stock

Shares of Visa were trading at $335.17 as of April 25. Over the last 52-week period, shares are up 26.27%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Visa

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Visa.

Analysts have provided Visa with 16 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $383.5, suggesting a potential 14.42% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Mastercard, Fiserv and PayPal Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Mastercard, with an average 1-year price target of $640.6, suggesting a potential 91.13% upside.
• Analysts currently favor an Outperform trajectory for Fiserv, with an average 1-year price target of $256.5, suggesting a potential 23.47% downside.
• Analysts currently favor an Neutral trajectory for PayPal Holdings, with an average 1-year price target of $84.13, suggesting a potential 74.9% downside.

Overview of Peer Analysis

In the peer analysis summary, key metrics for Mastercard, Fiserv and PayPal Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Visa ranks at the top for Gross Profit and Revenue Growth among its peers. It is in the middle for Return on Equity. The company with the highest Return on Equity has the lowest Revenue Growth. The company with the lowest Gross Profit has a negative Revenue Growth.

All You Need to Know About Visa

Visa is the largest payment processor in the world. In fiscal 2023, it processed almost $15 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

Understanding the Numbers: Visa's Finances

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Visa displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 10.15%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Visa's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 53.83% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Visa's ROE stands out, surpassing industry averages. With an impressive ROE of 13.56%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Visa's ROA excels beyond industry benchmarks, reaching 5.49%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.55, Visa adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Visa visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.