Visa Inc. (NYSE:V) has posted impressive transaction figures for the current quarter, highlighting robust performance in both e-commerce and cross-border transactions. The financial giant reported a 7% year-over-year surge in payment volume within the United States last month, providing valuable insights into the industry’s current dynamics.
Payments Volume
In the quarter-to-date period, credit payments volume in the United States saw a 5% increase, while debit payments experienced a 6% rise. These growth rates also indicate a sequential uptick in payment volumes for the month of August. Notably, card-not-present volume witnessed an impressive 9% year-over-year growth in August, while card-present volume showed a more modest increase of 4%. This divergence suggests that e-commerce businesses are still thriving, surpassing their brick-and-mortar counterparts.
For the fiscal fourth quarter, market analysts estimate a 6.5% growth in U.S. payments volume, reflecting a consistent upward trend with a 6% increase in the quarter-to-date period. Visa’s revenue stream heavily relies on payment volumes, making this performance particularly significant.
The Zacks Consensus Estimate for Visa’s fiscal fourth-quarter revenues stands at $8.6 billion, signaling a robust 9.8% year-over-year growth. Similarly, the consensus projection for earnings per share is $2.23, indicating a substantial 15.5% growth compared to the previous year.
Processed Transactions
Visa’s global processed transaction growth has stabilized at 10% in the quarter-to-date period, as disclosed in regulatory filings. Despite some fluctuations earlier in the year, during this period, processed transaction volume—crucial for data processing revenues—remained at a strong 154% of the 2019 level. Market analysts predict an 11.5% year-over-year increase in Visa’s fiscal fourth-quarter data processing revenues.
Cross-Border Volume
August marked an 18% year-over-year surge in total cross-border volume, following a 17% increase in July. Excluding intra-Europe transactions, cross-border volume, which significantly contributes to the company’s international transaction revenues, grew by an impressive 20% year over year in both July and August. This trend is expected to continue, particularly in the Asia Pacific region, as travel continues to rebound.
The Zacks Consensus Estimate for Visa’s fiscal fourth-quarter international transaction revenues suggests a substantial 10.9% year-over-year increase.
Full-Year Estimates & Earnings Track Record
For fiscal 2023, market analysts estimate Visa’s revenues to reach $32.6 billion, reflecting an 11.2% year-over-year growth, driven by the consistent growth in payments, transactions, and cross-border volumes. The consensus estimate for earnings per share is $8.65, indicating an impressive 15.3% growth compared to the previous year.
Visa has consistently outperformed earnings expectations in the past four quarters, with an average surprise of 5.2%. This underscores the company’s ability to adapt and thrive in a rapidly evolving financial landscape.
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